Latest statistics from Abu Dhabi National Oil Company show a 1.9 percent drop in international crude oil prices. The Free On Board (FOB) price of Murban crude oil lifted in October 2012 was posted at USD 113.20 per barrel from USD 115.40 per barrel in September 2012.

International crude oil prices have been on an upward trend for the past three months, resulting in the in rise in local fuel prices.

Over the same period, the shilling depreciated against the dollar. Statistics from Central Bank of Kenya (CBK) show the mean exchange rate for the month of October stood at KES 85.21 to the dollar, from KES 84.70 to the dollar posted in September. This represents 0.48 percent depreciation.

While it might be too early to speculate, the observed drop in international crude oil prices may result in a drop in fuel price, though weakening of the shilling could counter this drop and balance things out. Watch out for our predicted fuel prices to be posted on a later date.

The latest fuel price review, released on 14 October 2012, saw an increase in local retail fuel prices. The price of super petrol increased by KES 6.31 to retail at KES 115.26 per litre. Diesel increased by KES 5.04 to retail at KES 106.11 per litre. Kerosene increased by KES 6.36 to retail at KES 86.01 per litre in Nairobi. This increase was attributed to upward trend in the prices of crude and refined petroleum products in the international market and depreciation of the Shilling against major currencies in October 2012 as compared to July 2012.