2.

3 Conceptual framework

A conceptual framework is what a researcher envisages or conceptualizes as the relationship

between variables in the study diagrammatically or graphically. This study conceptualizes the
relationship between the oil prices of items like Super petrol, Diesel, Kerosene and how they
influence or impact the consumer price index (CPI) and how the government is a moderator.

Oil prices: Super/Regular Petrol, Consumer Price index (CPI)

Diesel, Kerosene.
• Cost of goods
 Demand shocks
• Transport costs
 Import prices
• Producer Price Index
 Pump prices
• Inflation
 OPEC+
• Manufacturing costs
 Oil supply
• Economic growth and
development

The Government

• Ministry of Energy
&Petroleum

• EPRA

• NOCK

• Taxes

• Subsidies

INDEPENDENT VARIABLE MODERATING VARIABLE DEPENDENT VARIABLE

2.4 Empirical review
2.4.1 To forecast the prices of major products and CPI’s in Kenya for the next five years and how this can
help in the realization of Vision 2030.

2.4.2 Find out the correlation between CPI and prices of different major oil products in Kenya

2.4.3 Forecast CPI and prices of oils in Kenya for the next eighteen months using time series technique

2.4.4 To find out if the rate of change of oil prices is uniform over the last five years