The new Kenyan President, William Ruto did away with the fuel subsidy that was put by the former president Uhuru Kenyatta a few months ago. This move saw petroleum prices increase significantly. Super petrol, for instance, now costs Ksh.175 per litre. This may have increased the cost of living, but it has also saved the country about 14 billion Kenyan shillings.
When the subsidy was scrapped, people knew for sure that petroleum prices would cross the Ksh.200 line. Calculations estimated the price to be at Ksh.214. However, this was not the case since the cost fell below the estimated price. Petroleum is an important product in the economy and most of the time, dictates the prices of commodities. Commodity prices have this tendency of going up if the prices of petroleum are high.
In the months ahead, we are anticipating a reduction in the price of petroleum prices. It will cost even lower than the current prices. The global petroleum prices were adversely affected by the situation in Russia and Ukraine. Whatever is contributing to the reduced prices in the future is the global trend. International crude oil prices are currently falling. Furthermore, the outlook for new global refinery capacity is positive. Several large facilities are coming online making it easier to process more oil into petrol and diesel, which again increases supply and lowers prices. There is a glimpse of hope in the future. Find more information here, https://www.rte.ie/brainstorm/2022/0819/1316708-petrol-prices-oil-supply-refinery-capacity-recession/.
Content created and supplied by: andru (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More