Following the rise of fuel prices in the world, Kenya now has the cheapest diesel among four East African countries comprising of Tanzania, Uganda and Burundi.
In Kenya, a litre of diesel is retailing at an average of Ksh112.63, while in the other three countries the same is going for Ksh118.44, Ksh139.08 and Ksh149.91 in Tanzania, Uganda and Burundi respectively.
Initially, Kenya had the most expensive fuel among its peers in East Africa, but the prices have been kept constant in the last three months thanks to the government’s fuel subsidy programme.
The programme was re-introduced on April 14, 2021, aimed at reducing fluctuation of prices in Kenya.
The subsidy is derived from the petroleum development levy, which now stands at Ksh5.40 a litre from the initial contribution of Ksh0.40 a litre.
In terms of petrol prices, Kenya is the second-cheapest country after Tanzania. A litre of petrol in Kenya is retailing at Ksh131.63 while in Tanzania it is retailing for Ksh125.2. In the region, petrol is the most expensive in Uganda, with a litre going for Ksh158.1 per litre while in Burundi a litre goes for Ksh152.85.
Oil skyrocketed earlier this week to the highest since 2008, in part due to fears that the loss of Russian flows may stretch an already tight market. Prices also surged as the U.S. moved to ban Russian imports, which if followed by other Western nations, could see crude hit $240 a barrel, according to Rystad Energy.
As of Thursday, a barrel of crude oil was retailing at $116, up from $106 on Wednesday, indicating uncertainty of global fuel prices.
According to reports, the government will need at least Ksh10 billion in March and another Ksh15 billion in April to compensate oil marketers and keep local pump prices unchanged.