An analysis of fuel prices between Kenya and Tanzania reveals that Tanzanian consumers are enjoying notably lower prices, with petrol being KSh 27 cheaper than in Kenya.
This price difference highlights the varying energy costs in East African nations.
Fuel prices have continued their downward trend into January 2025, marking a significant reduction compared to December 2024, with the main factor being a favorable shift in foreign exchange rates.
— The Citizen Tanzania (@TheCitizenTz) January 1, 2025
According to a statement from the Energy and Water Utilities Regulatory Authorityโฆ pic.twitter.com/Vtf9RLOpNg
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Tanzania’s New Fuel Prices
Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA) has implemented new reduced fuel prices for January 2025. The regulatory body announced that
“The Energy and Water Utilities Regulatory Authority has announced the maximum prices for petroleum products in the country, which will take effect starting Wednesday, January 1, 2025, at 12:01am.”
The new prices in Tanzania are:
– Petrol in Dar es Salaam: TSh 2,793 (KSh 149.13) per litre, reduced from TSh 2,898 (KSh 154.74)
– Diesel: TSh 2,644 (KSh 141.18) per litre, down from TSh 2,779 (KSh 148.39)
– Kerosene: TSh 2,676 (KSh 142.89) per litre
Mamlaka ya Udhibiti wa Huduma za Nishati na Maji (EWURA) inatangaza bei kikomo za bidhaa za mafuta ya petroli hapa nchini zitakazotumika kuanzia Jumatano ya tarehe 01 Januari 2025 saa 6:01 usiku. pic.twitter.com/K2cLVKgSoR
— EWURA Tanzania (@EwuraTanzania) December 31, 2024
Kenya’s Current Fuel Prices
In Kenya, the Energy and Petroleum Regulatory Authority (EPRA) conducted its price review on December 14, 2024, implementing new prices effective from December 15 to January 13. The review resulted in price reductions across all fuel types:
– Petrol: KSh 176.29 per litre (reduced by KSh 4.37)
– Diesel: KSh 148.39 per litre (reduced by KSh 3)
– Kerosene: KSh 165.06 per litre (reduced by KSh 3)
In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, we have calculated the maximum retail prices of petroleum products which will be in force from ๐๐๐ญ๐ก ๐๐๐๐๐ฆ๐๐๐ซ ๐๐๐๐ to ๐๐๐ญ๐ก ๐๐๐ง๐ฎ๐๐ซ๐ฒ ๐๐๐๐.^DC pic.twitter.com/TL3og7n3Ip
— Energy and Petroleum Regulatory Authority (@EPRA_Ke) December 14, 2024
Comparing Kenya and Tanzania Fuel Prices
The price comparison between the two nations shows significant differences:
– Petrol: Tanzania is cheaper by KSh 27
– Diesel: Tanzania is cheaper by KSh 16.67
– Kerosene: Tanzania is cheaper by KSh 5.5
Why Fuel Prices in Kenya are Higher Than Tanzania
An analysis by FX Pesa lead market analyst Rufas Kamau reveals that Kenya’s high fuel prices are significantly influenced by multiple tax levies. He said,
“The biggest tax on fuel is VAT, which is adding KSh 29.98 per litre of super petrol. Excise duty is second, with KSh 21.95 per litre of super petrol.”
He emphasized that these substantial taxes on petroleum products have broader economic implications, directly impacting productivity and reducing overall economic output.
