This is in addition to numerous taxes that account for almost half of the pump price, making some products in the country more costly compared to neighbouring countries.
The Energy and Petroleum Regulatory Authority (EPRA) on Tuesday night retained pump prices at the same level for the fourth straight month, even as the cost of imports dropped.
A litre of petrol will continue retailing at Sh177.30, Diesel at Sh162 while Kerosene will retail at Sh145.94 per litre, until March 14.
“The price of diesel has been cross subsidised with that of super petrol while a subsidy of Sh19.41 per litre has been maintained for kerosene, in order to cushion consumers from the otherwise high prices,” EPRA director general Daniel Kiptoo said on Tuesday.
The government will utilise the Petroleum Development Levy to compensate Oil Marketing Companies for the difference in cost, he said, with the companies demanding arrears of up to Sh60 billion dating back to last year.
A litre of petrol in Uganda, which imports through the Port of Mombasa, is averaging Ush5,120 (Sh175.25). Diesel in the country is however higher compared to Kenya, at Ush5,330 (Sh182.44).
The average fuel prices in Tanzania from October last year to last week was Tsh2,844.00 (Sh152.72) per litre, with a maximum of Tsh2,886.00 (Sh154.97) and a minimum of Tsh2,819.00 (Sh151.38).
Prices remain high in Kenya despite the drop recorded in global crude prices which started easing in October last year, trading at below the 100 mark on a barrel.
Last month, the benchmark–murban crude averaged $90.90 down from $93.53 in December.
The average landed cost of imported super petrol decreased by 0.12 per cent from $660.65 (Sh82,977) per cubic metre in December, to $659.87 (Sh82,879) in January.
Diesel decreased by 4.76 per cent from $818.45 (Sh102,797) per cubic metre to $779.49 (Sh97,903 )per cubic metre.
Kerosene had the biggest drop margin of 5.1 per cent, from $816.62 (Sh102,567) to $774.99 (Sh97,338) per cubic metre.
The shilling has however recorded a month-on-month drop since August, with importers accessing the dollar at way higher prices than the Central Bank of Kenya indicative rates.
While the shilling was at 118 on the CBK rate, banks were selling it to importers at an average 120.64.
This went up to 128.58 in December before hitting an average 130.64 to the dollar, above CBK’s selling average of Sh125.45 to the dollar.
Kenyans also pay up to nine different taxes on fuel prices, with excise tax taking the lion's share, followed by Road Maintenance Levy, VAT and the Petroleum Development Levy.
Other levies factored in the fuel pricing are Petroleum Regulatory Levy, Railway Development Levy, Anti-adulteration Levy, Merchant Shipping Levy and the Import Declaration Fee.
According to EPRA, taxes and levies contribute the highest portion of the pump price of Super petrol and are the second greatest contributor to the price of diesel and kerosene.
“Import Declaration Fee, Railway Development Levy and Value Added Tax are charged as a percentage of the product cost resulting into a compounding effect when products cost increases,” EPRA notes.
