Global oil prices hit Ksh13,300 per barrel as US inflation rises to 3.7%, CBK says
Global oil prices climbed to approximately Ksh13,300 per barrel as US inflation accelerated to 3.7 per cent in September 2026, raising fresh economic concerns for Kenya following a sharp increase in domestic fuel prices. The Central Bank of Kenya (CBK), in its weekly monetary and financial developments bulletin released on Friday, October 16, reported that […]
Global oil prices surged to approximately Ksh13,300 per barrel in September 2026, following a significant rise in US inflation to 3.7% from 3.4% in August. This development raised concerns for Kenya, as domestic fuel prices spiked due to increased international oil costs.
The Central Bank of Kenya (CBK) reported a rise in Murban crude oil prices from Ksh13,198 to Ksh13,292 per barrel, while US headline inflation climbed to 3.7% after hitting 3.4% the previous month. This price surge was traced to geopolitical tensions in the Middle East and heightened concerns over global oil supplies.
Kenya's fuel prices reflected the global increase, with petrol, diesel, and kerosene seeing price hikes. Super Petrol went up by Ksh12.93 to Ksh226.96 per litre, diesel increased by Ksh9.90 to Ksh227.76, while kerosene saw the highest rise at Ksh28.49 to Ksh219.87 per litre.
These fuel price hikes could have far-reaching economic consequences, particularly for sectors reliant on petroleum products. Higher diesel costs could escalate the expenses of transporting goods, potentially straining household budgets.
US inflation, excluding food and energy prices, rose to 2.6%, staying above the US Federal Reserve's 2% target. Persistent inflation could complicate monetary policy decisions in major economies, particularly if energy prices remain high.
Despite the rising oil prices, the Kenyan shilling remained relatively stable against the US dollar, trading at Ksh129.81 on October 15, unchanged from the previous week. However, foreign exchange reserves dwindled to Ksh1.907 trillion, covering imports for 5.9 months, slightly below the CBK's four-month minimum requirement.
Gold prices also climbed as investors sought safe-haven assets amid uncertainty. Gold rose to approximately Ksh541,495 per ounce, up from Ksh536,790 on October 8. For Kenya, sustained oil price increases could intensify pressure on transport, production, and distribution costs, complicating efforts to curb the cost of living.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
