Why Kenyan motorists are buying fuel in Tanzania

Burundi is the second country with the lowest price at $1.146 followed by DR Congo at $1.231.

Uganda comes next with its fuel being sold at $1.285 followed by Rwanda at $1.297.

According to the Energy and Water Utilities Regulatory Authority (Ewura), Tanzania keeps pump prices low because the country is using a bulk procurement system in the importation of petroleum fuel.

Ewura director general James Andilile added that taxes imposed on fuel imports are also on the low end, encouraging end suppliers to retail the commodity at affordable prices.

“Fuel taxes in Tanzania are in the region of between 25 and 30 percent, compared to other countries in East Africa whose taxes go beyond 40 percent,” Dr Andilile underscored.

He went on to add: “This is also one of the issues that our counterparts from other countries will learn from Tanzania, in their efforts to regulate fuel prices back home.”

Dr Andilile was speaking in Arusha during the 15th Annual General Assembly of the Energy Regulators Association of East Africa (Erea), which was attended by regulators from Kenya, Uganda, Rwanda, Burundi and the host Tanzania.

The Ewura boss was reacting to as why Kenyan motorists were being compelled to cross the borders and fuel their vehicles on the Tanzanian side.

Reports have it that dozens of motorists and Boda boda riders in the border town of Namanga, Kajiado County, are increasingly crossing into Tanzania in search of cheaper fuel.

In Tanzania a litre of petrol costs $0.279 less compared to the Kenyan side.

“We are refuelling in Tanzania nowadays. With the economic hardships in Kenya we have no choice, but to go for the cheaper fuel,” Jackson Marashua, a motorist, told the Nation earlier this week.

Recently, a number of oil marketers have set up filling stations at the Namanga border.

However, the number of transit trailers is said to have reduced significantly in the past two weeks, dealing a blow to the handful of filling stations in Namanga town.

One of the petrol station attendants said: “sales have reduced significantly, most of the trucks are refuelling on the other side (Tanzania).”

Those using diesel- powered generators were also forced to source fuel from across the border as Tanzania has the lowest price in the region.

According to the Global Petrol Prices.com data, in Tanzania a litre of diesel is selling at $1.04 compared to the Kenya’s $1.287, the highest price in the region.

This means by motorists and bodaboda riders from Kenya refuelling in Tanzania, they stand a chance to save $0.247.

Uganda is the second country with the cheapest diesel in the region, with the price of a litre of the product standing at $1.207 followed by Burundi at $1.217.

DR Congo and Rwanda come next with the prices standing at $1.227 and $1.276 respectively.

Earlier on during the African Union (AU) High Level Forum Meeting held in Nairobi, Kenya, delegates urged AU member states to ensure that reliable and affordable energy supplies become accessible throughout the continent.

The forum urged AU Member States to mobilize additional financing towards enhancing the participation of Independent Power Producers (IPPs) upon providing subsidies and other incentives to increase energy access in Africa.

AU Members were further urged to invest in essential energy infrastructure at the same time remove barriers to private investors with interest in this sector.

Some of the AU forum recommendations that were also being addressed at the Erea Annual General Assembly were ensuring technologies are upgraded to address power leakages that arise from poor metering and delayed replacement of meters.

The forum urged the African Union Commission (AUC) to develop guidelines to accelerate mobilization of additional resources to accompany private sector actors to participate in IPPs within the energy sector in Africa.

 Speaking earlier, Erea executive secretary Geoffrey Mabea said Energy regulators from five East African Countries converging in Arusha also discussed, among other things, ways through which member states can attract more investments in the energy sectors.