Following the most recent price review, which boosted pump prices by up to Sh21.32 per litre, Kenya is currently the 12th most expensive country in Africa for petrol. Nairobi’s cost of a litre of diesel increased by Sh21.32 to Sh200.99 ($1.37), while the cost of a litre of super gasoline increased by Sh16.96 to Sh211.64 ($1.4) as a result of high taxes and a quickly depreciating shilling. Kenya only falls behind the Central African Republic (CAR), Malawi, Zimbabwe, Sierra Leone, and seven other nations in terms of having the costliest fuel, according to a study of fuel prices across Africa.
Pump prices have reached record highs as a result of Kenya’s decision to double Value Added Tax (VAT) on fuel to 16 percent as of July 1. This decision, along with the country’s currency’s freefall, the ongoing rise in refined fuel prices globally, and the elimination of a stabilization program, have all contributed to this situation.
Last week, Davies Chirchir, the cabinet secretary for energy, issued a dire warning about unpleasant days ahead for customers at the gas pump that would further destroy their hopes for relief from the skyrocketing cost of living.
“We are negotiating with several governments as well as the manufacturers of these goods. We’re probably headed for even tougher times, Mr. Chirchir warned lawmakers this week.
Zimbabwe is the costliest country in Africa for diesel at Sh256.39 ($1.76) a litre, followed by CAR at Sh320.49 ($2.2). A litre of fuel costs Sh253.48 ($1.74) in Blantyre, the capital of Malawi, with Seychelles having the fifth-highest price at Sh247.65 ($1.7) per litre.
The country with the highest super gasoline pump prices is CAR, where a litre costs Sh260.67 ($1.79), followed by Seychelles, where a litre costs Sh247.65 ($1.7). Super gasoline retails at Sh240.37 ($1.65) per litre in Zimbabwe and for Sh233 ($1.6) in Dakar, Senegal.
In the most recent exchange rate used to determine pump prices, the shilling fell to 148.98 units to the dollar from 123.88 units a year earlier, even though crude costs—a major factor in refined fuel prices—have been climbing recently. Some Kenyans living in border towns have crossed into Tanzania in quest of cheaper petrol due to Kenya’s record-high pump prices.
A litre of fuel costs Sh189.38 ($1.3) while a litre of super gasoline costs Sh186.47 ($1.28) in Tanzania. Diesel and super petrol cost Sh180.64 ($1.24) and Sh198 ($1.36), respectively, in Rwanda. Despite the neighboring nation importing its fuel through the Port of Mombasa, Kenya, and Uganda were locked in the price of diesel, with a litre costing Sh203 ($1.4). Every litre of super costs Sh79.31 in taxes and fees, while a litre of diesel, the most common fuel in the Kenyan economy, costs Sh67.35.
Over the years, the Treasury has fought efforts to lower gasoline taxes, and Parliament has not adopted proposals made by one of its committees to lower the VAT on petroleum products to 4% and the petroleum development fee from Sh5.40 to Sh2.50 per litre.
