(Last Updated On: January 16, 2015)
Recently crude oil prices have fallen by over 50% due to the high supply and less demand from China. Machines are getting more efficient so they end up using less oil and more countries are producing more oil. In Kenya fuel prices have only gone down by a very tiny percentage. Why is this? It turns out that in that fuel cost there are so many fixed charges. These never change so the margin by which we can reduce our oil prices is reduced drastically. Without them prices would drop by close to 50% from the current prices.