Fuel Bargains: 4 Affordable Kenyan Hotspots (LIST)
The Energy and Petroleum Regulatory Authority (EPRA) increased petroleum prices on July 1, 2023, by the Finance Act, of 2023, after the Value-Added Tax (VAT) on gasoline, diesel, and kerosene increased from 8% to 16%.
Consequently, Kenyan car owners have sought alternative ways to fuel their vehicles, such as crossing borders to purchase cheaper gasoline, particularly drivers who reside near borders.
Accordingly, GossipA2Z examined cheaper fueling options, such as border-point fueling, independent fuel stations with long-term inventories, and fuel depot price promotions.
Here are some locations in Kenya where motorists can obtain affordable fuel:
Cities close to the boundary
In general, fuel prices in Tanzania are lesser than in Kenya. Therefore, drivers can save money by filling their containers across the border. Isiolo, Namanga, and Taveta are three border communities where motorists can purchase cheaper fuel.
The exchange rate between the Tanzanian and Kenyan shillings and the Samia Suluhu government’s petroleum pricing policies are responsible for the lower fuel prices.
Currently, a liter of gasoline costs Ksh160.75 in Tanzania, which is Ksh34.75 less than in Nairobi. In Tanzania, a liter of diesel costs Ksh162.77, which is Ksh16.83 less than in Nairobi.
Due to this price disparity, motorists and boda-boda riders are now passing the Namanga border into Tanzania to purchase cheaper fuel.
Since the Tanzanian government has not announced intentions to increase fuel prices, this price disparity is likely to persist for the foreseeable future.
Consequently, motorists and boda-boda riders who reside close to the border may want to contemplate crossing into Tanzania to refuel.
Gas Stations in Uganda’s Border Towns
Kenyan commuters have crossed into Uganda to purchase cheaper gasoline. The current price of gasoline in Nairobi is approximately Ksh195.3, while the average price in Uganda is Ksh169. This implies that Kenyan drivers near border towns can save up to Ksh30 per liter by filling their tanks across the border.
This practice has existed for some time, but in recent weeks, as fuel prices in Kenya continued to rise, it has become more prevalent.
Similarly, the Ugandan government has not taken action to prevent Kenyan motorists from crossing the border to purchase gasoline, and it is unlikely that they will do so in the future.
There are several reasons why Kenyan motorists are prepared to travel to Uganda to purchase gasoline. First, the price differential is substantial. Second, crossing the frontier is relatively simple. Thirdly, several gas stations on the Ugandan side of the border serve Kenyan drivers.
Independent fuel stations with long-term supplies
In Kenya, several independent fuel stations sell gasoline at lower prices than major oil companies. The majority of these stations are located in rural areas, with a scattering in main cities.
They are exempt from the same price controls as the main oil companies. As a consequence, they can sell fuel to consumers at a lower price.
A spot check reveals that there are two significant independent fuel stations stocked with long-term products along Mombasa Road in Nairobi. One is located a few meters from Gateway Mall, where a liter of gasoline costs Ksh190, Ksh5 less than usual.
Typically, these stations are located in less competitive areas, such as rural areas or along main highways. They typically have larger fuel tanks, allowing them to store more petroleum and sell it at a reduced price.
Even within the same brand, gasoline prices can vary from station to station. Therefore, it is always a good idea to compare prices before filling your tank.
Fuel Depot Price Promotions
The main oil companies in Kenya frequently offer significant discounts to motorists through fuel price promotions. Typically, companies publicize these promotions on their websites and social media pages.
These gas stations are offering discounts on special gasoline, diesel, and kerosene. In this case, clients who purchase at least 30 liters of fuel receive an additional five liters.
Promotions typically have a validity period of one month.
Fuel Bargains: 4 Affordable Kenyan Hotspots (LIST)
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