Kenyan motorists are now heading to the Kenya-Tanzania border in search of cheap fuel. This is after prices for petrol, diesel and kerosene spiked following the Energy and Petroleum Regulatory Authority’s (EPRA) review on September 14.
With the review, pump prices crossed the Ksh200 mark per liter, marking the highest prices in Kenya’s history.
Kenyan motorists, however, are finding a way of navigating the tough times by buying the petroleum products at the Namanga border since prices in the neighboring country are fair.
A liter of petrol in Tanzania goes for Kshs193 while diesel goes for Kshs196 per liter compared to Kshs.211.64 and Ksh200.99 respectively in Kenya.
Also Read: EPRA Increases Fuel Prices; Petrol, Diesel, Cross Ksh200 Mark
By purchasing from the neighboring country, the motorists are saving an average of about Ksh6 to Ksh20.
Why are fuel prices in Kenya so high?
Going by the latest prices review, about Kshs 79.31 goes to taxes and levies on every liter of petrol, Kshs 67.35 goes to taxes and levies for a liter of diesel while Kshs 62.81 goes to the taxes and levies for every liter of kerosene.
In Kenya currently, the taxes and levies that contribute to the hiked prices of the most used petroleum products include, Excise duty, Road maintenance levy, Petroleum Development levy.
Other levies are the Petroleum regulatory levy, Anti-adulteration levy, import declaration fee the Merchant shipping levy and the Value Added Tax (VAT)
The VAT was reintroduced into the country in September 2018, as a condition for an International Monetary Fund facility loan.
Among the conditions for the loan included amending tax laws and removing some items that were exempt, including petroleum products.
The Value Added tax has however doubled in the year 2023, with VAT taking Ksh14 from every liter of kerosene, Ksh 14.50 from every liter of petrol and Ksh13.86 from every liter of diesel.
Leaders’ reactions to prices hike
The Cabinet secretary for the Ministry of Trade, Investments and Industry, Moses Kuria drew widespread condemnation after telling Kenyans to drill fuel wells.
According to Kuria, it was beyond the government to tame the pump prices.
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“How will camping on Twitter from morning to evening help you? I’m asking the youths not to be into that life, if you keep lamenting about the fuel prices why not drill your own borehole.
Crude oil has increased in prices worldwide,” Kuria said on Saturday, September 16, two days after the announcement of the hiked fuel prices.
However, Deputy President, Rigathi Gachagua chastised him urging government leaders to stop the arrogance when addressing Kenyans.
