Cooking Oil Prices Hit New Highs in Kenya Amid Global Demand for Biofuels
Prices of key commodities fluctuated in 2024, with some products recording notable increases despite expectations of declines. Among the outliers was cooking oil, whose prices rose unexpectedly, alongside fuel price dynamics that left many Kenyans puzzled.
In its end-year Monetary Policy Report released on Monday, December 9, the Central Bank of Kenya (CBK) attributed the spike in cooking oil prices to reduced production in Southeast Asia and rising global demand for biofuels.
A 10-litre container of cooking oil now retails at approximately Ksh2,650, up from Ksh2,000 earlier in the year, while a three-litre goes for Ksh900. “Edible oils price inflation increased in October 2024, driven by higher prices of palm, soy, sunflower, and rapeseed oils, attributed to lower production in key producing countries in Southeast Asia,” the CBK stated.
Decline in Other Commodities
In contrast, sugar and cereals recorded a drop in prices. Following a Cabinet resolution on November 14, Kenya banned sugar imports after local production levels became self-sufficient. Improved sugar production in Brazil, aided by favorable weather, is expected to keep prices stable globally.
Similarly, cereal prices declined as India removed export restrictions on non-broken rice. This, combined with lower inflation, will likely stabilize cereal prices into 2025.
Fuel Price Stability
Despite political instability in the Middle East, global oil prices declined due to increased supply from non-OPEC producers and weak demand in China. Kenyan fuel prices remained stable throughout the year, with petrol, diesel, and kerosene retailing at Ksh180.66, Ksh168.06, and Ksh151.39 per litre, respectively.
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Cooking Oil Prices Hit New Highs in Kenya Amid Global Demand for Biofuels
