The Energy and Petroleum Regulatory Authority (EPRA) Tuesday addressed 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 Sh8.99, Sh8.67 and Sh9.65 per litre, respectively.
In response to some of the Frequently Asked Questions (FAQs), EPRA talked on 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 said.
“If the local currency depreciates against the dollar, the cost of importing petroleum products increases, leading to higher prices at the pump.”
EPRA said while international oil prices affect all countries equally, domestic policies and economic conditions largely determine the final cost passed on to consumers.
Kenya currently has the highest fuel prices in the region, with petrol retailing at Sh186.31 per litre.
It is followed by Uganda at Sh182.21, Rwanda at Sh161.32, Tanzania at Sh142.70, and Ethiopia at Sh114.49.
Kenya also tops the list in diesel prices, with a litre going for Sh171.58.
Uganda follows closely at Sh169.22, then Rwanda at Sh157.21, Tanzania at Sh137.30, and Ethiopia at Sh108.84.
Similarly, for kerosene, Kenyan consumers pay the highest price at Sh156.58 per liter while Uganda comes next at Sh126.32, followed by Tanzania at Sh130.40, and Ethiopia at Sh108.85.