May 21, 2024

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Kenya’s Fuel Consumption Drops On Rising Fuel Prices

2 min read

Nairobi — Kenya’s fuel consumption and demand fell last year, the latest data from the Energy and Petroleum Regulatory Authority (EPRA) shows.

According to a report, Kenyans consumed 4.3 million cubic meters of fuel in 2023, down from 4.5 million cubic meters during a similar period in 2022.

The fall came at a time when the government introduced an additional eight percent on fuel to 16 percent last year, helping push the prices of super petrol, diesel, and kerosene to their highest levels, making them unaffordable for Kenyans.

The depreciation of the local unit against major foreign currencies, such as the American Dollar, also made fuel importations costly, with oil marketing companies passing on extra charges to consumers.

“The overall domestic demand for petroleum products declined by 3.01% to 2,717,699.16 m3 compared to a corresponding period in 2022. This reduction in consumption could be attributed to suppressed demand,” they stated.

However, EPRA points out that there was a significant increase in fuel demand in December last year, which they attributed to increased travel following the festive season.

“The demand of petroleum products through the period under review was steady with the highest consumption level being recorded in August 2023,” the Authority wrote in the report.

“This notably coincides with the highest demand for AGO. The highest demand for PMS was recorded in December 2023 and can be attributed to increased travel during the festive season,” it added.

Kenya Pipeline Company, which primarily handles petroleum products in the country, nonetheless handled more petroleum compared to the past three years, which they say is due to an increased volume in the transit market.

The company handled 4.1 million cubic meters of fuel in 2023, compared to 3.7 million cubic meters in 2022.

“The Kenya Pipeline Company (KPC) primarily handles petroleum products imported into the country. This represents about 95% of petroleum products imported during the period under review.”

By Capital FM.

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