Kenya's Fuel Consumption Drops To Lowest Level In 5 Years Amid High Pump Prices

• Oil prices soared past the KSh 200 mark after President William Ruto assented to laws doubling the Value Added Tax (VAT) from 8% to 16%
• The consumption of diesel dropped from 687.66 million litres to 658.09 million litres between July and September
• At the same time, consumption of petrol declined from 499.54 million litres to 497.46 million litres, hitting levies and taxes collected by the Kenya Revenue Authority (KRA)

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Amid high pump prices, Kenya has witnessed a significant downturn in fuel consumption, reaching its lowest level in half a decade.

Why fuel consumption dropped in Kenya

Oil prices soared past the KSh 200 mark after President William Ruto assented to laws doubling the Value Added Tax (VAT) from 8% to 16%.

According to Business Daily, the consumption of diesel dropped from 687.66 million litres to 658.09 million litres between July and September.

At the same time, consumption of petrol declined from 499.54 million litres to 497.46 million litres, hitting levies and taxes collected by the Kenya Revenue Authority (KRA).

"Oil revenue recorded a performance rate of 84.8% in July-September 2023 for a deficit of KSh 12.9 billion against target and a decline of 8.6% over July-September 2022 collections," KRA stated.

What are fuel prices in Kenya?

On Thursday, December the Energy and Petroleum Regulatory Authority (EPRA) released the revised maximum retail prices for petroleum products that will be in place until January 14, 2024.

The cost of petrol decreased by KSh 5.00 per litre, diesel by KSh 2.00 per litre, and kerosene by KSh 4.01 per litre.

Consumers in Nairobi will pay KSh 212.36, KSh 201.47, and KSh 199.05 for a litre of super petrol, diesel, and kerosene, respectively.

"In the period under review, the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene decreased by .., . and . per litre respectively. In Nairobi, Super Petrol, Diesel and Kerosene will now retail at KSh 212.36, 201.47 & KSh 199.05 effective midnight for the next 30 days," EPRA noted.

EPRA highlighted a significant decline in the average landing cost of imported petroleum products.