Kenyans could soon experience lower fuel prices after the Central Bank of Kenya (CBK) reported a decrease in international oil prices prior to the Energy and Petroleum Regulatory Authority’s (EPRA) upcoming pump price evaluation.
In its weekly report released on Friday, June 5, CBK confirmed that global oil prices decreased during the period ending June 4, 2026, following renewed confidence in the ongoing peace discussions between the United States and Iran.
According to the bank, Murban crude oil fell to $87.38 (Ksh11,315) per barrel on June 4 from $88.48 (Ksh11,457) per barrel on May 28, marking a decrease of approximately Ksh142 per barrel.
“International oil prices declined as market participants reacted to enhanced optimism regarding the continued U.S.-Iran peace negotiations. Murban crude oil price decreased to USD 87.38 per barrel on June 4, from USD 88.48 per barrel on May 28,” CBK reported.
This development occurs as the new pricing is scheduled to be implemented from June 15 to July 14.
The forthcoming review has drawn considerable attention after Energy Cabinet Secretary Opiyo Wandayi suggested that EPRA would apply a Ksh10 reduction in diesel prices.
Meanwhile, CBK observed that the Kenyan shilling maintained stability during the assessment period, trading at Ksh129.52 against the US dollar on June 4, identical to the rate from the previous week.
Fuel expenses in Kenya are affected by numerous factors, including global oil prices, the exchange rate of the Kenyan shilling versus the US dollar, taxes and levies, and the expense of importing petroleum products.
A consistent currency protects consumers from sudden rises in imported fuel expenses by decreasing the amount oil distributors pay when procuring petroleum products in dollars.
However, despite the slight reduction in crude oil prices, inflation in May increased to 6.7 per cent from 5.6 per cent in April, primarily due to higher energy and transportation costs associated with previously elevated global oil prices.
“Overall inflation increased to 6.7 per cent in May 2026 from 5.6 per cent in April 2026, mainly driven by higher energy prices and transportation costs arising from the elevated global oil prices,” CBK emphasized.