Global Oil Prices Rise Days Before EPRA’s Fuel Price Review
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Global oil prices have risen to above Ksh 12,991 per barrel days before Kenya’s next fuel price review, with the Central Bank of Kenya (CBK) reporting an increase in Murban crude amid supply concerns linked to geopolitical tensions in the Middle East.
Murban crude rose to approximately Ksh 13,211 per barrel on October 8, 2026, from KSh 12,443 on October 1, according to the CBK Weekly Bulletin released on Friday, October 9.
This represented an increase of about Ksh 768 per barrel as global inflationary pressures mounted due to higher energy and food prices.
The latest figures come ahead of the next monthly fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), expected on Wednesday, October 14.
Middle East Tensions Raise Global Energy Concerns
CBK attributed the increase in Murban crude prices to supply concerns associated with ongoing geopolitical tensions in the Middle East.
It has also identified the conflict in the region and the continuing war between Ukraine and Russia as risks to Kenya’s inflation outlook.
Speaking during a press conference on Thursday, October 8, CBK Governor Kamau Thugge warned that geopolitical developments could disrupt global supply chains and push up commodity prices.
Also Read: CBK Reveals Measures Set to Keep Kenya’s Inflation in Check
He also cited possible supply disruptions and renewed pressure on food prices linked to anticipated El Niño conditions.
Despite these risks, the CBK expects Kenya’s overall inflation to remain within its target range of 2.5 to 7.5 per cent in the near term.
The bank’s October 9 bulletin said the outlook was supported by monetary policy actions, government interventions and a stable exchange rate.
Monetary Policy Committee maintained the Central Bank Rate at 8.75 per cent following its October 7 meeting, saying the current policy stance remained appropriate to keep inflation expectations anchored within the target range and support exchange-rate stability.
Fuel Measures and Shilling Stability
Thugge has pointed to fuel subsidies and reduced value-added tax (VAT) on petroleum products as government measures intended to cushion households and businesses against higher energy costs.
He said the interventions would help contain price pressures, while a stable shilling would moderate the cost of imported goods.
The governor also reported that September 2026 Monetary Policy Committee surveys showed inflation expectations remained well anchored within the target range despite pressure from energy prices.
CBK data showed the shilling exchanged at Ksh 129.94 against the US dollar on October 8, compared with Ksh 129.71 on October 1.
Also Read: CBK Governor Explains Why Benchmark Rate Remains at 8.75%
The bulletin also reported a decline in spot gold prices, which fell to approximately Ksh 537,163 per ounce on October 8, 2026, from Ksh 542,858 on October 1, representing a drop of about Ksh 5,695 per ounce during the week.
Meanwhile, global inflation concerns persisted. Annual headline inflation in the euro area rose to 3.8 per cent in September from 3.2 per cent in August, largely driven by higher energy prices.
EPRA’s upcoming review will set the next maximum retail fuel prices for Kenya, following the latest movements in international oil markets.
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Photo of CBK Governor Kamau Thugge during a presentation of the latest CBK report on October 8
PHOTO/File
