According to EPRA DG Daniel Kiptoo

Below factors are making Uganda and Tanzanian Fuel Cheaper Than Kenyan Fuel, According to EPRA DG Daniel Kiptoo


Daniel Kiptoo, director general of the Energy and Petroleum Regulatory Authority (EPRA), has responded to concerns over neighbouring nations' lower gasoline prices amid worries that Kenya may raise fuel prices to a record high on November 4.



Kiptoo gave two explanations for the disparity between Tanzania's and Kenya's high fuel costs during his Tuesday appearance before the National Assembly Energy Committee.



The pricing mechanism and the currency rate were identified by the DG as the reasons behind the substantial variations in prices.


The Tanzanian shilling has somewhat weakened against the Kenyan shilling in recent months, according to the DG.


For the most portion of the year, however, the dollar had surpassed the Kenyan shilling in value. Right now, Ksh151.40 is the retail price of a dollar.



13.3% of Kenyan shillings have been lost to Tanzanian shillings. 



The exchange rate is the primary determinant when we convert that landing cost to Kenyan shilling. 



It is important to compare apples to apples even when comparing those Tanzanian figures, the DG said.


The head of EPRA, however, stated that Tanzania employs a distinct procedural model that was founded on economic considerations going back two months.


In Kenya, on the other hand, consideration is given to the previous month's economic circumstances.


There is no way to compare Kenya's petroleum product taxes to those of its neighbours, stated Davis Chirchir, the cabinet secretary for energy.


Thus, CS hinted that if the industry is examined from a broad perspective, prices in Kenya will go down.


"When compared to Tanzania and Uganda, Kenya has the lowest F&B premiums. But the goods are more expensive because of our taxes and levies," he said.


Tanzania's Energy and Water Utilities Regulatory Authority (EWURA) recently reviewed the price of Super Petrol and found that it was now Ksh197.62 instead of Ksh198.04. 


Similar quantities are being offered in Kenya for Ksh217.36 following a KshKsh5.72 hike.


Tanzanian diesel prices were fixed at Ksh 203.65. In Kenya, Ksh205.47 is the equivalent sum.


However, given that CS Chirchir hinted that prices in Kenya would soon surpass Ksh300 due to international causes, like as the Israel-Hamas war, prices there may increase.

 

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