Fuel Prices Expected to Drop in December, Says Ruto

In a recent address in Kirinyaga, President William Ruto assured Kenyans that steps are being taken to reduce fuel prices. Ruto emphasized the government's commitment to finding solutions to prevent prices from escalating beyond what is manageable for the majority of citizens.

"We have started addressing the issue of fuel prices. While prices have risen everywhere, Kenya has a plan. We've explored ways to keep prices from reaching a point where many Kenyans would be adversely affected," stated Ruto.

He pointed out that the current month has already seen a decrease in fuel prices, with further reductions anticipated in the coming month.

In October, Nairobi residents were paying Sh217.36 for a liter of petrol, Sh205.47 for diesel, and Sh204.46 for kerosene. Although petrol prices remained unchanged in November-December, diesel and kerosene saw a Sh2 decrease.

Daniel Kiptoo, Epra Director General, assured consumers that the government would offset the impact of increased landed costs on pump prices. The National Treasury is utilizing existing resources to compensate oil marketing companies during the November-December 2023 pricing cycle.

As of now, petrol is retailing at Sh217.36 per liter in Nairobi, diesel at Sh203.47, and kerosene at Sh203.06. These prices will be effective until December 14 at midnight when a new pricing cycle begins.

Interestingly, Tanzania experienced a drop in petroleum product prices earlier in the month. EWURA Director-General James A. Mwainyekule attributed this reduction to a 5.68% decline in global oil prices and decreased importation premiums.

Energy Cabinet Secretary Davis Chirchir addressed concerns about the disparity in fuel prices between Kenya and Tanzania, citing a "lag effect" in price computation. He explained that Epra considered fuel cargoes procured in September but discharged in Mombasa between October 10 and November 9 for the November-December pricing cycle.

Chirchir highlighted that September 2023 Platts prices were the highest in the last 12 months. Despite recent warnings about potential price increases due to global conflicts, the government remains focused on stabilizing fuel costs for its citizens.