In the border town of Namanga in Kenya's Kajiado County, dozens of drivers and riders of boda boda are progressively entering Tanzania to get less expensive gasoline. The Finance Act of 2023, which increased the VAT on gasoline, diesel, and kerosene from 8% to 16%, was implemented in Kenya on July 1 and resulted in a rise in fuel costs, thus, the reason some Kenyans are crossing their border in search of cheaper gasoline.
According to statistics from GlobalPetrolPrices.com, a liter of gasoline costs $1.119 in Tanzania compared to Kenya's $1.398, which is the highest price in the area. Burundi is the second-cheapest nation, with a price of $1.146, after the Democratic Republic of the Congo ($1.231). Rwanda follows Uganda with petrol priced at $1.297, Uganda sells at $1.285.
A liter of diesel costs $1.04 in Tanzania, compared to $1.287 in Kenya, the highest price in the area. This indicates that automobiles and bodaboda riders from Kenya may save $0.247 by refilling in Tanzania. Uganda has the second cheapest fuel in the area, with a liter costing $1.207, followed by Burundi at $1.217. The prices in the Democratic Republic of the Congo and Rwanda are $1.227 and $1.276, respectively.
Tanzania maintains affordable pump rates, according to the Energy and Water Utilities Regulatory Authority (Ewura), because it imports petroleum gasoline in bulk.
A liter of gasoline costs Ksh195.5 in Nairobi, including Kajiado County, whereas Tanzanian shillings are worth Sh2,781 (Ksh160.75) at the current currency rate of Sh17.3 to one Kenyan shilling. As a result, a liter of gasoline costs Ksh34.75 less in Tanzania.
Diesel is now available for Sh2,816 per liter, or Ksh162.77, as opposed to Ksh179.60 in the Nairobi area, saving Kenyan drivers Ksh16.83 per liter.
The majority of the cars, trucks, and motorbikes filling up at the Admire filling station, which is a mile from the border, were from Kenya, according to a spot check by the nation that evening.
Kerosene had run out at the station. In contrast to Kenya, where pump prices have risen, Tanzania's fuel costs have been declining over the past two months.