Fuel consumers in Kenya could enjoy lower pump prices in the coming months if calm returns to the Middle East. Energy Cabinet Secretary Opiyo Wandayi said the benefits may begin reaching motorists around August.
The CS explained that developments in global oil markets do not affect local prices immediately. Kenya follows a pricing system that delays the transfer of international changes to consumers.
Wandayi noted that authorities determine local fuel prices using international benchmark rates from the previous month. This approach creates a gap between global market shifts and domestic price adjustments.
Fuel imported and discharged during a specific month uses benchmark prices recorded earlier. As a result, consumers experience changes several weeks after movements occur internationally.
Strait of Hormuz Remains Key
The Cabinet Secretary pointed to the Strait of Hormuz as a critical route for global oil supplies. Any disruption along the channel can influence international fuel prices and supply chains.
He stated that stable operations in the region would support lower oil costs worldwide. Those gains would eventually filter into Kenya’s fuel pricing structure.
Recent reports indicate progress in efforts to ease tensions between the United States and Iran. Discussions have reportedly included a ceasefire arrangement and the reopening of the Strait of Hormuz.
Wandayi explained that a successful agreement in June could influence future pricing cycles. Under Kenya’s current formula, consumers may start feeling the effects around August.
Subsidies Still Affect Pump Prices
The CS also clarified that current fuel prices already benefit from government interventions. These measures help cushion consumers from the full impact of international market rates.
He added that future reductions would apply to the actual fuel cost before subsidies. Therefore, any decrease at the pump would depend on both global prices and existing support measures.
Wandayi stressed that fuel price adjustments happen gradually rather than instantly. He maintained that any benefits from global stability would reach Kenyans over time through the established pricing system.
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