Comparing Fuel Price In Kenya, Uganda And Tanzania

The Energy Petroleum and Regulatory Authority (EPRA) announced new fuel prices that have left Kenyans talking and tongues wagging. The sharp rise in fuel prices for this month has been criticized by both Kenyans and hypocritical politicians.

In the new prices, the price of Super Petrol and Diesel was increased by 7.63 and 5.75 shillings per liter respectively while the price of Kerosene was increased by 5.41 shillings per liter. The prices will be in place for the next 30 days before a review.

Those in Nairobi, a liter of Super Petrol will go for 122.81 shillings. Those consuming Diesel are parting with 107.66 shillings while Kerosene users will part with 97.85 shillings.

Those in Mombasa the price for petrol, diesel, and kerosene has been adjusted to 120.41, 105.27, and 95.46 shillings respectively. Kisumu motorists will pay 123.36, 108.46, and 98.68 shillings for Petrol, Diesel, and Kerosene respectively.

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But what is the price of fuel in Kenya comparing to other neighbors such as Uganda and Tanzania? Is it true that the prices in Kenya are the highest? Which country among the three has the least in terms of fuel prices? Kenya, Uganda, or Tanzania?

A liter of Super Petrol in Kenya is going for 122.81 shillings. The same in Uganda is going for 116.22 shillings. The price is lowest in Tanzania at 93.67 shillings. Diesel in Kenya is 107.66 shillings, in Uganda at 109.35 shillings, and Tanzania still the cheapest at 90.36 shillings. Kerosene in Kenya is 97.85 shillings per liter, 98.50 shillings in Uganda, and 88.09 shillings in Tanzania.

Comparing the three countries, the prices of fuel in Tanzania are the lowest. But why is the price of fuel in Kenya such expensive? Where are the extra costs coming from? Who is to blame for the hiked fuel prices?

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The taxes levied on fuel in Kenya are the reason for the hiked prices. The taxes are 100 percent the cost of the fuel itself. For instance, the landed cost of a liter of petrol last month was 49.84 shillings, and 46.82 shillings for diesel, and 42.96 shillings for kerosene.

Basing on the landed cost, all the three products should retail below 100 shillings, but instead, the three products are retailing at 122.81, 107.66, and 97.85 shillings respectively, in Nairobi. Kenyans pay nine different taxes and levies on fuel.

The taxes and levies on fuel include an excise duty of  12.95 shillings per liter of petrol and 11.37 shillings on every liter of diesel and kerosene. Kenyans are also paying 18 shillings per liter of petrol and diesel as Road Maintenance Levy, 5.40 shillings as Petroleum Development Levy, and 0.25 shillings per liter as Petroleum Regulatory Levy.

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When fuel prices increase the way they have spiked this month, Kenyans are in for a tough ride as the price of vital commodities is expected to increase. This will in turn lead to an increase in the inflation rate. Kenyans should expect a high inflation rate for the month of February as compared to others.

The inflation rate in Kenya is determined by a number of factors, including and not limited to the cost of transport, price of foodstuffs such maize flour, cooking oil, as well as vegetables such as kales.

Most manufacturing companies in Kenya use diesel-powered generators to generate energy and use roads for transport. The increase in fuel prices basically increases the cost of the product and the same cost is rolled over to consumers.