Why Fuel Lands In Kenya At Shs60 But Is Sold At Shs130 As Uhuru Called To Act

Kenyans have been wondering why the landing cost of fuel is relatively low, yet the prices they’re paying for the commodity at the filling station is more than double that cost. EPRA recently announced the fresh prices of Fuel showing that with petrol at least Sh74 are gobbled up by taxes; diesel Sh62 and kerosene Sh56.

Of the Sh 74 levied as tax, Sh21.95 is excise duty, Sh18 (road maintenance levy), Sh5.4 (petroleum development levy), Sh2.04 (import declaration fee) and Sh9.98 (value-added tax) with other levies are railway development levy, merchant shipping levy, distribution and storage costs (Sh3.17) and oil marketers’ margins (Sh12.39).

On diesel, excise duty takes up Sh11.37, road maintenance (Sh18), petroleum development levy (Sh5.4), import declaration fee (Sh1.81), railway development levy (Sh1.04), value-added tax (Sh8.56), distribution and storage costs (Sh2.9) oil marketers’ margins (Sh12.36), among others.

On kerosene, Sh11.37 is value-added tax (Sh8.21), railway development levy (Sh1.05), import declaration fee (Sh1.83), distribution and storage costs (Sh2.88), oil marketers’ margins (Sh12.36), anti-adulteration levy; which is unique to kerosene only, (Sh18), among others.

In Uganda a litre of petrol retails at Sh131.85, diesel at Sh117.48 and kerosene at Sh88.76. In Tanzania, one litre of petrol goes for Sh115.27, diesel Sh106.91 and kerosene Sh103.27.

In Rwanda, a litre of petrol retails at Sh121.33, diesel Sh117.48 and kerosene Sh30.37.

In Ethiopia, which has the lowest fuel prices in the region, a litre of petrol goes for Sh51.57, diesel (Sh45.58) and kerosene (Sh44.65).