Local motorists were alarmed when the Energy and Petroleum Regulatory Authority (EPRA) on July 1, increased fuel prices in line with the Finance Act, 2023, after the Value-added Tax (VAT) on petrol, diesel and kerosene increased from 8 per cent to 16 per cent.
As a result, Kenyan car owners have been looking for alternative means to power their cars including crossing the borders to buy cheaper fuel, especially for drivers who live around border points.
Accordingly, Kenyans.co.ke, reviewed cheaper fueling options as outlined in this article, which include border-point fueling, independent fuel stations with long-term stocks, and fuel depot price promotions.
Here are some places where motorists in Kenya can get cheaper fuel:
Towns near the border
i) The fuel prices at Tanzania are generally lower than in Kenya. Motorists can, therefore, save money by crossing the border to fill up their tanks. Some towns near the border where motorists can find cheaper fuel include Namanga, and Taveta.
The cheaper fuel prices are attributed to the exchange rate between the Tanzanian shilling and the Kenyan shilling as well as the Samia Suluhu government's policies on fuel pricing.
A litre of petrol in Tanzania is currently selling for Ksh160.75, which is Ksh34.75 less than in Nairobi. A litre of diesel retails at Ksh162.77 in Tanzania, which is Ksh16.83 less than in Nairobi.
As a result of this price difference, motorists and boda boda riders are now crossing into Tanzania at the Namanga border to get cheaper fuel.
This price difference is likely to continue for the foreseeable future since the Tanzanian government has not announced plans to increase fuel prices.
As a result, motorists and boda boda riders who live near the border may want to consider crossing into Tanzania to fill up their tanks.
ii) Fueling at Uganda's Border Towns
Kenyan motorists have been crossing into Uganda to buy cheaper fuel. The price of petrol is currently around Ksh195.3 in Nairobi, while in Uganda, it averaged Ksh169. This means that Kenyan motorists around the border towns can save up to Ksh30 per litre by crossing the border to fill up their tanks.
This practice has been going on for some time, but it has become more common in recent weeks as fuel prices in Kenya continued to rise.
At the same time, the Ugandan government has not taken any action to stop Kenyan motorists from crossing the border to buy fuel, and it is unlikely that they will do so in the future.
There are a few reasons why Kenyan motorists are willing to make the trip to Uganda to buy fuel. First, the price difference is significant. Second, the border crossing is relatively easy and straightforward. Third, there are a number of fuel stations on the Ugandan side of the border that cater to Kenyan motorists.
Independent fuel stations with long-term stocks: There are a number of independent fuel stations in Kenya that sell fuel at lower prices than major oil companies. These stations are often located in rural areas with a few dotted in major cities.
This is because they are not subject to the same price controls as the major oil companies. As a result, they are able to sell fuel at a lower price passed on to consumers.
A spot check shows that there are two major independent fuel stations that stock long-term products in Nairobi, both located along Mombasa Road. One is situated a few metres from Gateway Mall where a litre of Petrol is Ksh190, Ksh5 cheaper than normal rates.
These stations are typically located in areas where there is less competition, such as rural areas or along major highways. They often have larger fuel tanks, which allows them to store more fuel and sell it at a lower price.
It is important to note that the price of fuel can vary from station to station, even within the same brand. As a result, it is always good to shop around before filling up your tank.
Fuel Depot Price Promotions: The major oil companies in Kenya often run fuel price promotions, which can offer motorists significant discounts. These promotions are usually announced on the companies' websites and social media pages.
These fuel depots are offering a promotion on super petrol, diesel, and kerosene. In this case, customers who fill up their tanks with at least 30 litres of fuel are gifted five litres more.
The promotions are normally valid for a period of one month.
