CBK Governor Patrick Njoroge says fuel prices expected to drop soon

Central Bank of Kenya Governor Dr Patrick Njoroge projects that fuel prices will drop by December despite President William Ruto ending the subsidy.

Speaking on Monday, during the Members of Parliament induction, Njoroge explained that while the cost of fuel in the international market had hit a record high in previous months, the cost had begun dropping.

“As you can see it had gone as far as $130 a barrel, that was in March and now it has come down to $93 a barrel,” Njoroge said.

“The expectation is that this will come even more to the point where we wouldn’t have to have the subsidies.”

He attributed this drop to the resumption of relative normalcy in the countries that produce oil.

He adds that while the regulator will execute its mandate by trying to regulate inflation, a more permanent solution will be realised when the cost of fuel drops.

The Governor agreed with President William Ruto that subsidies were detrimental to the economy, and may also affect inflation in the country.

“It is true we eliminated the fuel subsidies on the Super, Diesel…. We have the price coming down and thus the gap is widening so the pressure on the consumer and the government becomes less and less. That is the expectation but let’s wait and see,” he noted.