CBK explains trends in global oil prices ahead of EPRA fuel review

Global oil prices saw a significant decline during the week ending August 6, 2026, with Murban crude oil prices dropping to USD 72.54 (Ksh 9,394) per barrel from USD 78.24 (Ksh 10,132) per barrel over the previous week. Despite heightened geopolitical tensions in the Middle East, the Central Bank of Kenya (CBK) noted that these lower prices could provide relief for Kenyan motorists ahead of the Energy and Petroleum Regulatory Authority (EPRA) monthly fuel price review scheduled for August 14, 2026.

The drop in international oil prices comes at a critical time as EPRA prepares to announce new pump prices, which will influence local fuel costs for Kenya, a country that heavily imports refined petroleum products. The stable Kenyan shilling exchange rate further supports this potential relief, as it remained largely unchanged during the review period, at Ksh129.41 per US dollar.

With foreign exchange reserves standing at USD 15.25 billion (Ksh 1.97T), Kenya's economy appears well-positioned to benefit from the lower crude oil prices. Economists anticipate that the combination of a stronger external reserves position and reduced crude prices may help ease pressure on fuel inflation if sustained.

Brief written by urgent.news from People Daily Kenya's own syndicated text. Machine-written — it may contain errors, so check the original before relying on it.