By Ebi Kesiena
Petroleum market expert at Ola Energy has warned Kenyans to prepare for a further increase in pump prices after the Energy and Petroleum Regulatory Authority (EPRA) revised prices to an all-time high of over KSh 200 per litre.
In an interview with TUKO.co.ke, the official at Kenya’s leading petroleum outlet firm said current crude oil prices have hit $95 (about KSh 14,000, based on the current exchange rate) per barrel.
“Internationally, crude oil prices are trading at their highest since early November 2022, which could translate to higher gas prices for consumers and a potential rebound in inflation’’.
The expert noted that the price of West Texas Intermediate (WTI) crude—the U.S. benchmark traded marginally lower at $92 (KSh 13,000) per barrel during the same period under review, casting doom on the chance of international price decline.
A spot check on Trading Ecomics on Tuesday, September 19, showed crude oil traded at $92.4 (KSh 13,592) and Brent at $95.7 (KSh 14,077) per barrel.
According to the expert, OPEC cut daily production by over 1,300,000 barrels per day, which it has extended for the next three months.
“OPEC and its allies have cut production by up to 2.5 million barrels per day so far this year. Saudi Arabia and Russia have cut 1 million and 300,000 barrels per day, respectively.
“Saudi Arabia’s Ministry of Energy said Tuesday the kingdom is extending a production cut of 1 million barrels per day for another three months to boost prices,” he said.
He maintained that the cut in fuel production is expected to put further upward pressure on oil prices, which in recent weeks have risen to their highest in almost a year.
He said a combination of OPEC+ supply cuts, China’s recovery from pandemic lockdowns last year, and a still-solid U.S. economy have fueled an almost 40% rise in crude prices since late June 2023.
“Crude oil prices surged to record highs last year, amid the Russian invasion of Ukraine and global recovery from pandemic lockdowns. Kenya being part of the global economy, these rising crude prices could directly impact consumers all over the world through higher prices at the pump, which could further pressure on motorists and households,” he explained.
