Kenya’s fuel consumption and demand fell last year, the latest data from the Energy and Petroleum Regulatory Authority (EPRA) shows.
According to the 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.
This decrease occurred amidst the government’s implementation of an additional eight percent tax on fuel, raising the total tax to 16 percent. Consequently, the prices of super petrol, diesel, and kerosene soared to their highest levels, rendering them unaffordable for many Kenyans.
Furthermore, the depreciation of the local currency against major foreign currencies, such as the US Dollar, contributed to increased costs of fuel importation. Oil marketing companies passed on these additional charges to consumers.
EPRA noted that the overall domestic demand for petroleum products declined by 3.01%, totaling 2,717,699.16 cubic meters compared to the corresponding period in 2022. This reduction in consumption was attributed to suppressed demand.
However, there was a notable increase in fuel demand in December 2023, which EPRA attributed to heightened travel activity during the festive season. The Authority highlighted that the highest consumption levels were recorded in August 2023, coinciding with the peak demand for Automotive Gas Oil (AGO), while the highest demand for Premium Motor Spirit (PMS) occurred in December 2023 due to increased travel during the holiday period.
Despite the decrease in domestic demand, the Kenya Pipeline Company (KPC), responsible for handling petroleum products in the country, reported an increase in petroleum volume compared to the past three years. In 2023, KPC handled 4.1 million cubic meters of fuel, up from 3.7 million cubic meters in 2022.
KPC primarily handles petroleum products imported into the country, representing approximately 95% of petroleum products imported during the period under review.
