Fuel prices in Kenya are expected to drop further on Tuesday, as the country benefit from the Russia/Saudi oil production duel that has triggered a steep decline in global prices.
Last month, the Energy and Petroleum Regulatory Authority (EPRA) announced significant cuts in fuel prices, attributing the drop to decreased prices of the weighted average cost of imported refined petroleum products.
Super petrol, diesel and kerosene prices decreased by Sh2.00 per litre, Sh2.80 per litre and Sh7.23 per litre respectively.
Motorists in Nairobi are currently buying a litre of super petrol at Sh110.87, diesel Sh101.65 and kerosene at Sh95.46.
On Friday, the price of Brent crude fell nearly 2.5 per cent to $31.82 per barrel despite news that the oil cartel and allies –under the banner Opec+ – had reached a deal that would end a price war between the two countries.
Even so, G20 energy ministers did not mention production cuts in a statement released after a virtual summit hosted by Saudi Arabia on Friday.
The meeting had been expected to seal the deal on production cuts but the statement pledged that the G20 would work together to ensure oil “market stability”.
The deal could have been jeopardised by Mexico’s refusal to cut production by 400,000 barrels per day from May to June, only agreeing to 100,000 barrels.
Previously, OPEC+ had said they would push G20 members to cut an additional 5 million barrels of oil per day.
“We commit to ensuring that the energy sector continues to make a full, effective contribution to overcoming COVID-19 and powering the subsequent global recovery,” the statement said.
