Strong Kenya Shilling To Cut Pump Prices In April But Not In Coming Months, Expert

• Kenya has been reporting a drop in pump prices in the last three months, supported by a drop in the global market and the recent gain in the value of the shilling
• Energy and Petroleum Regulatory Authority (EPRA) is expected to further reduce fuel prices in April 2024 as the shilling continues to outshine the US dollar
• However, a recent surge in global oil prices could shatter the gains, pushing pump prices up in the coming months
• The Petroleum Outlets Association of Kenya (POAK) chair Martin Chomba explained that the rise could hit the Kenyan market starting May and June 2024

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenyans will have to dig deeper into their pockets to buy fuel in the coming months as global prices surge.

Data from Trading Economics showed crude oil and Brent prices rose to $86.3 (KSh 11,237) and 90.5 (KSh 11,784), respectively, as of Thursday, April 11.

This represented the highest level since October 2023, posing a risk to the global supply chain.

What will be pump prices in April 2024?

In an exclusive interview with TUKO.co.ke, Petroleum Outlets Association of Kenya (POAK) chair Martin Chomba said the rise in global fuel prices will start trickling into Kenya's economy in May and June 2024.

Chomba noted that in April 2024, Kenyan motorists will enjoy a sustained drop in pump prices supported by the continued strength of the shilling against the US dollar.

"We will start seeing a rise in pump prices in the coming months... from May and June, probably due to rising global prices and what is happening between Israelis and Hamas.

"On the 14th of this month, we will still enjoy a drop in pump prices attributed to the continued strength of the shilling. As you know our oil imports are dollar-denominated," Chomba explained.

Chomba, however, noted that Kenyans will still have the benefit of the government-to-government oil deal that is scheduled to expire in December 2024.

What's the current fuel price in Kenya?

The Energy and Petroleum Regulatory Authority (EPRA) is expected to release its monthly review of pump prices on Sunday, April 14.

Last month, EPRA reduced the prices of super petrol, diesel and kerosene by KSh 7.21, KSh 5.09, and KSh 4.49 per litre, respectively.

This saw a litre of petrol retail at KSh 199.15, diesel at KSh 190.38 and kerosene at KSh 188.74 in Nairobi.

The regulator attributed the reductions to changes in the average landed costs of imported petroleum products, which are calculated in dollars.

What to know about drop in fuel prices

• In February 2024, EPRA reduced the price of a litre of super petrol, diesel and kerosene by KSh 1.
• In January 2024, super petrol, diesel, and kerosene prices dropped by KSh 5, KSh 5 and KSh 4.82 per litre, respectively.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke