Global Crude Oil Prices Fall To An 18-Year-Low, But Not In Africa

The price of crude oil around the world has fallen to an 18-year-low as the deadly Coronavirus continues to spread though Africans continue to pay higher prices.

According to BBC, Brent crude fell to 22.58 US dollars per barrel, the price that was last witnessed in the year 2002.

The price of crude oil in the US West Texas Intermediate fell below 20 US dollars per barrel, the lowest in 18 years after a drop of more than 6 percent.

Global fuel prices have dropped in the past months as fuel companies cut back production with some closing down with the remaining ones flooding the market.

The price also dropped, at one time by 30 percent following a price war between Saudi Arabia and Russia with Saudi Arabia doubling production, hence flooding the market.

In most African countries, the price of fuel is still high with the global drop having little impact on the people in terms of prices.

“As to why the price of petrol in Kenya is not at 50 shillings or 60 shillings beats my understanding of economics. Globally, prices of crude oil have dropped by more than 30 percent, the largest drop in history,” lamented one motorist.

At the time that global crude oil prices dropped by 30 percent, Kenya reduced the price of refined fuel products by less than two percent with the same having no impact on the common consumer.

The government of Kenya directed all public service vehicles (PSVs) not to carry more than 60 percent of their normal capacity but at the same time calling on them to maintain the initial fare. With the current fuel prices, that is not economically viable for Matatu owners leading to them doubling fares.

“We are literally paying for the empty space next to us, which is understandable. You cannot expect a Matatu to shield the costs when the government is doing nothing about it,” said one passenger.

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