Why Kenya’s fuel prices are the highest in East Africa - EPRA

The Energy and Petroleum Regulatory Authority (EPRA) has addressed growing concerns over Kenya's fuel prices, which remain significantly higher than those in the neighbouring East African countries.

Last week, the cost of petrol, diesel, and kerosene increased by Ksh.8.99, Ksh.8.67 and Ksh.9.65 per litre, respectively. 

A spot check by Citizen Digital revealed that Kenya currently has the highest fuel prices in the region, with petrol retailing at Ksh.186.31 per litre. It is followed by Uganda at Ksh.182.21, Rwanda at Ksh.161.32, Tanzania at Ksh.142.70, and Ethiopia at Ksh.114.49.

Kenya also tops the list in diesel prices, with a litre going for Ksh.171.58. Uganda follows closely at Ksh.169.22, then Rwanda at Ksh.157.21, Tanzania at Ksh.137.30, and Ethiopia at Ksh.108.84.

Similarly, for kerosene, Kenyan consumers pay the highest price at Ksh.156.58 per litre. Uganda comes next at Ksh.126.32, followed by Tanzania at Ksh.130.40, and Ethiopia at Ksh.108.85.

In response to some of the Frequently Asked Questions (FAQs), EPRA highlighted key contributors to the high fuel prices such as Kenya’s tax regime, import logistics, and exchange rate fluctuations. 

Some of these taxes imposed on petroleum products include road maintenance levy, petroleum development levy, import declaration fee, petroleum regulatory levy, railway development levy, anti-adulteration levy and merchant shipping levy, excise tax, including the applicable currency exchange rates. 

The authority also cited the local currency exchange rate whereby the weakening of the Kenyan shilling against the US dollar increases the cost of fuel imports.

“Many East African countries rely on the importation of crude oil and refined petroleum products. The cost of these imports is denominated in U.S. Dollar,” EPRA explained.

“If the local currency depreciates against the dollar, the cost of importing petroleum products increases, leading to higher prices at the pump.”

The regulator emphasised that while international oil prices affect all countries equally, domestic policies and economic conditions largely determine the final cost passed on to consumers.