Consumers should gain from drop in fuel prices

A man adjusts fuel prices downwards on a price board at a petrol station in Eldoret town on September 15, 2014. The Energy Regulatory Commission is on Wednesday expected to announce new fuel prices, with consumers expecting a high reduction as global prices continue on a free fall. PHOTO | JARED NYATAYA |

Photo credit: File

What you need to know:

  • Why aren’t Kenyans enjoying the slide in global prices of crude oil? Fingers have been pointed at the closure of the Mombasa-based refinery in September last year, which has necessitated importation of the more expensive refined oil products.

  • Lack of an effective competitive environment is another reason that has been advanced by experts  for this state of affairs.

  • However,  the slump in prices of crude oil has been so deep that there is no justification for consumers not to feel the impact.

FOR THE COMMON man, falling prices of fuel ought to be good news. This is because  prices for goods and services are supposed to go down as well. Ideally, lower prices of fuel should translate to a drop in the cost of living.

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