Looming fuel prices hike as oil producers (OPEC) announced plans to cut output
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Fuel prices bound to hike ahead of the monthly review as oil producers (OPEC) announced plans to cut output
Fuel prices bound to hike ahead of the monthly review as oil producers (OPEC) announced plans to cut output.
Prior to the Energy and Petroleum Regulatory Authority’s (EPRA) upcoming review on Friday, April 14, oil marketers, importers, and consumers are bracing for a fuel price increase and unpredictability.
Global fuel prices had risen, according to the Central Bank of Kenya’s weekly assessment released on Friday, April 7.
CBK explained the latest development revealing that fuel producers had reduced importation.
“International oil prices increased during the week, mainly due to plans by producers to reduce output.
“Murban oil price increased to Ksh11,312 (USD 86.30) per barrel on April 5 from Ksh10,317 (USD 78.71) per barrel on March 30,” CBK wrote.
CBK’s warning came after oil producers announced plans to cut output by more than one million barrels daily.
Saudi Arabia and other major oil producers announced surprise cuts totaling 1.15 million barrels per day from May until the end of the year, a move that could raise prices worldwide.
The Organisation of the Petroleum Exporting Countries (OPEC) made the announcement following a ministerial meeting that resolved to cut the output.
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Saudi Arabia specifically announced that it would cut the output by 500,000 barrels.
Kuwait, Algeria, and Oman will also lower production by 128,000, 48,000, and 40,000 barrels per day, respectively.
Defending the decision, the Saudi energy ministry said the kingdom’s voluntary reduction was a precautionary measure to support the stability of the oil market.
“OPEC is taking pre-emptive steps in case of any possible demand reduction,” he stated.
In the last review, EPRA increased the retail price of Super Petrol by Ksh2.00 per litre for March 15 to April 14 pricing cycle. The prices of Diesel and Kerosene remained unchanged.
Following the review, super petrol retailed at Ksh176.98 in Mombasa and Ksh179.30 in Nairobi, while Diesel was at Ksh159.76 and Ksh 162.00 in Mombasa and Nairobi, respectively.
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