The value of 13-kiogramme liquefied petroleum gasoline (LPG) fell to a three-year-low of Sh2,033.57 in September on poor world demand for oil attributable to restrictions to curb the unfold of Covid-19, new knowledge reveals.
The Kenya Nationwide Bureau of Statistics (KNBS) knowledge reveals that the September costs of 13-kilo LPG is the bottom since 2017 when it retailed for Sh1,998.70.
Wanjiku Manyara, common supervisor on the Petroleum Institute of East Africa (PIEA) hyperlinks the drop to a hunch within the world crude oil market.
“This ought to be an indicator or reflection of the worldwide crude oil costs discount that we have now skilled this 12 months on account of the consequences of the present world pandemic.
“LPG is a byproduct of crude oil refining and therefore a drop in crude oil costs might be mirrored on petroleum merchandise,” she stated.
In March, the indicative Brent crude worth plummeted 25 per cent to a mean of $33.90 (Sh3,734.42) a barrel, the steepest one-day decline because the 1991 Gulf Struggle.
“In 2019, Kenya’s petroleum product imports amounted to $3.31 billion, and the typical worth of our benchmark oil product was $66.5 (Sh7,325.64) per barrel. The benchmark worth now has fallen to $51 (Sh5,618.16) per barrel, which portends important financial savings,” stated the Central Financial institution of Kenya in March.
This comes at a time when logging moratorium is fuelling cooking gasoline uptake, producing a demand-driven enterprise throughout Kenya that noticed 234,400 tonnes of LPG imported within the first 9 months of 2019.