Kenya’s Fuel Prices 12th Highest in Africa

Kenya now has the 12th costliest fuel in Africa following the recent price review that increased pump charges by up to Ksh21.32 per litre.

A litre of diesel jumped by Ksh21.32 to Ksh200.99 ($1.37) in Nairobi while that of super petrol rose by Ksh16.96 to Ksh211.64 ($1.4) in the wake of high taxes and a sharply falling shilling.

A comparison of fuel prices across Africa shows that Kenya only trails the Central African Republic (CAR), Malawi, Zimbabwe, Sierra Leone, and seven other countries in terms of the most expensive fuel.

Kenya doubled Value Added Tax (VAT) on fuel to 16 percent from July 1 this year, which coupled with the free-falling local currency, continued rally in global prices of refined fuel, and scrapping of stabilisation scheme have combined to send pump prices to record highs.

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Energy Cabinet Secretary Davies Chirchir last week warned of painful days ahead at the pump further dashing hopes for millions of consumers already pushed to the brink by the soaring cost of living.

“We are dealing with several governments and the suppliers of these products. We are likely to be going to even harder times,” Mr Chirchir told lawmakers last week.

CAR has the most expensive diesel in Africa at Ksh320.49 ($2.2) per litre followed by Zimbabwe at Ksh256.39 ($1.76). In Blantyre, the capital city of Malawi, a litre of diesel is going for Ksh253.48 ($1.74) with Seychelles the fifth most expensive at Ksh247.65 ($1.7) per litre.

Pump prices for super petrol are highest in CAR at Ksh260.67 ($1.79) per litre followed by Seychelles where a litre is retailing at Ksh247.65 ($1.7). A litre of super petrol is retailing at Ksh240.37 ($1.65) in Zimbabwe and Ksh233 ($1.6) per litre in Dakar, Senegal.

The shilling plunged to 148.98 units to the dollar in the latest exchange rate used to set the pump prices compared to 123.88 units a year ago, while crude prices— a key determinant of refined fuel prices— have been rising in recent months. Record-high pump prices in Kenya have prompted some Kenyans at the border towns to cross over into Tanzania in search of cheaper fuel.

In Tanzania, a litre of diesel is retailing at Ksh189.38 ($1.3) while that of super petrol is going for Ksh186.47 ($1.28). In Rwanda, diesel and super petrol are going for Ksh180.64 ($1.24) and Ksh198 ($1.36) respectively.

Kenya tied with Uganda in the cost of diesel with a litre going for Ksh203 ($1.4), despite the neighbouring country importing its fuel through the Port of Mombasa.

Taxes and levies account for Ksh79.31 ($0.54) in every litre of super, followed by Ksh67.35 ($0.46) for a litre of diesel— the most used fuel in the Kenyan economy.

The Treasury has over the years resisted attempts to reduce taxation on fuel while Parliament has also failed to adopt recommendations by one of its committees to cut VAT on petroleum products to four percent and reduce petroleum development levy from Ksh5.40 to Ksh2.50 per litre.