Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo has addressed concerns over the cheaper fuel costs in neighbouring countries amidst fears that Kenya will increase fuel prices to a historic high on November 4.
While appearing before the National Assembly Energy Committee on Tuesday, Kiptoo attributed the discrepancy in high fuel prices in Kenya and Tanzania to two factors.
The DG cited that the exchange rate and the pricing model as the factors causing the stark differences in prices.
According to the DG, the Kenya shilling has lost some dominance over the Tanzania shilling in recent months.
The dollar, on the other hand, had gained dominance over the Kenyan shilling for the better part of the year. Currently, a dollar is retailing at Ksh151.40.
“We have lost 13 per cent of the Kenyan shilling to the Tanzanian shilling. As we convert that landed cost to the Kenya shilling, the biggest factor is the exchange rate. Even as we compare those Tanzanian numbers, we need to compare apples to apples,” he stated.
