Tanzania Maintains Cheaper Fuel Prices Than Kenya Despite Latest EPRA Cuts

Tanzania continues to offer cheaper petrol and diesel than Kenya, despite a reduction in the price of diesel announced by Kenya’s Energy and Petroleum Regulatory Authority (EPRA).

Under the new prices taking effect tonight, a litre of diesel in Nairobi will retail at KSh 217.86, while petrol will remain at KSh 214.03 per litre.

The new diesel price represents a reduction of KSh 5 per litre. However, fuel prices in Kenya remain considerably higher than those in Tanzania.

According to the latest maximum fuel prices published by Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA), effective from August 5, a litre of petrol in Dar es Salaam costs TSh 3,898, equivalent to approximately KSh 190, while diesel costs TSh 3,978, equivalent to about KSh 194.

This means diesel in Nairobi is approximately KSh 24 more expensive per litre than in Dar es Salaam, while petrol is also about KSh 24 more expensive.

The difference becomes significant for motorists and businesses that consume large quantities of fuel, particularly in transportation, agriculture, manufacturing and other sectors where fuel costs directly affect operating expenses.

EPRA said the reduction in Kenya’s diesel price was mainly driven by a 13.08% decline in the cost of imported diesel, while the cost of imported kerosene fell by 11.01%.

The cost of imported Super Petrol, however, increased by 6.99%. Despite the increase, the retail price of petrol was maintained through government measures aimed at cushioning consumers from higher fuel costs.

The Kenyan government spent approximately KSh 938 million to help stabilize the prices of petrol and kerosene.

In Tanzania, EWURA publishes maximum fuel prices every month for different parts of the country, with prices varying depending on location and transportation costs.

The latest comparison between Nairobi and Dar es Salaam therefore continues to place Tanzania ahead in terms of fuel affordability, with petrol and diesel both costing roughly KSh 24 less per litre in Dar es Salaam.

The difference could have a wider effect beyond motorists, as fuel prices influence transportation costs, the cost of moving goods, production expenses and household spending.