Hope for Cheaper Fuel as Global Oil Prices Drop Ahead of EPRA Review

Global oil prices have taken a considerable dip in the week ending August 8, raising hope among Kenyan motorists ahead of the anticipated Energy and Petroleum Regulatory Authority’s (EPRA) upcoming fuel price review.
Recently, the Central Bank of Kenya (CBK) weekly bulletin revealed the price of Murban crude oil dropped to Ksh 8,871 (USD 68.25) per barrel on August 7, marking a significant decline from Ksh9,550 (USD73.52) recorded a week earlier on July 31.
The shift in global market sentiment and supply outlook, and subsequent fall in international oil prices, have been attributed to a projected increase in global supply.
The Organization of the Petroleum Exporting Countries (OPEC) recently announced plans to boost production by 547,000 barrels per day from September in a move which is expected to loosen the current tight supply situation and lessen the pressure on oil prices globally.
Global oil prices remain unstable due to concerns about the economic impact of new U.S. tariffs. This uncertainty in turn creates fears of slower economic growth, thereby dropping demand for oil globally. This drop in demand subsequently decreases pressure on oil prices.
Closer home, the Kenyan shilling also maintained stability against the U.S. dollar, averaging Ksh129.24 throughout the week ending August 7.
The steady exchange rate is quite crucial for Kenya, which is a net oil importer, since fluctuations in the shilling-dollar rate have a direct repercussion on the cost of petroleum imports.
CBK data also showed that Kenya’s foreign exchange rate reserves stood at USD 10.89 billion as of August 8, representing 4.8 months of import cover. This figure is comfortably above the statutory minimum of four months, signalling a relatively healthy external position as the country continues to navigate global energy markets, which are quite volatile.
The latest oil price developments come just weeks after EPRA’s fuel price review on July 15, where prices soared to new levels in 2025.
During that review, the price of SuperPetrol rose by Ksh 8.99 per litre, Diesel by Ksh8.67, and Kerosene by Ksh9.65, pushing retail prices in Nairobi to Ksh186.31, Ksh171.58, and Ksh156.58 per litre, respectively.
With international crude oil prices continuing their downward streak from July into early August, there is an overall expectation that it could have a ripple effect on the fuel prices for the next month, starting August 15.
After the July review, Energy Cabinet Secretary Opiyo Wandayi assured Kenyans that prices would drop in the coming months, describing the hike as a”temporary situation”.
“The recent increase in fuel prices was a temporary situation. In fact, prices at the pump have generally been decreasing since July last year,” Wandayi said during a meeting before the National Assembly’s Energy Committee.