Fuel Cost: If you were to fill a 50-liter tank In Tanzania, it would cost you approximately $50.50 but In Kenya, it would cost you approximately $71.50

[255]

The Breakdown: Why the Gap?

The primary reason for the price difference is not the cost of the fuel itself, but the government’s cut.

1. Taxation (The Main Driver)

• Kenya: Approximately $0.64 (45%) of every dollar spent on a liter of petrol in Kenya goes directly to the government in the form of taxes and levies. This includes 16% VAT, the Road Maintenance Levy ($0.19/liter), and the Petroleum Development Levy.
• Tanzania: Tanzania maintains a lower tax-to-price ratio. The government chooses to collect less at the pump to keep the cost of transport and food production low.

2. Procurement Methods

• Kenya’s G-to-G Deal: Kenya uses a Government-to-Government arrangement with Gulf nations to manage dollar liquidity. While this has stabilized the Shilling, officials have admitted that the “Freight and Premium” costs can sometimes be higher than open-market tenders.
• Tanzania’s Bulk Procurement: Tanzania uses a competitive Bulk Procurement System (BPS) where international suppliers bid for the right to supply the country. In December 2025, Tanzania benefited from a 2.4% drop in petrol premiums due to these competitive bids.

3. Currency Impact

• Tanzania’s stability: The Tanzanian Shilling is less volatile. When global oil prices are quoted in Dollars, Tanzania’s stable exchange rate prevents the “shilling-price” from spiking unexpectedly.
• Kenya’s exposure: Although the Kenyan Shilling has strengthened in late 2025 to around KSh 129, it remains sensitive to large debt repayments, which often forces the regulator (EPRA) to keep prices higher as a buffer.

[mundu_mulosi]

I know you don’t understand how these things work, simply put, Kenya being a bigger economy, the purchasing power of an average consumer is much higher than of a Tanzanian. I do not expect fuel to be cheaper in Kenya than TZ.

Bado nadai nudes za Mama @255 .

[255]

@mundu_mulosi

I know you don’t understand how these things work, simply put, Kenya being a bigger economy, the purchasing power of an average consumer is much higher than of a Tanzanian. I do not expect fuel to be cheaper in Kenya than TZ.

Bado nadai nudes za Mama @255 .

@mundu_mulosi

Only a fool would agree with your comment.

USA vs Kenya

In most places in the U.S. right now you’d pay about $40–$48 for 50 liters of gasoline.

[Moi_Mc]

@255

…ility: The Tanzanian Shilling is less volatile. When global oil prices are quoted in Dollars, Tanzania’s stable exchange rate prevents the “shilling-price” from spiking unexpectedly.
Kenya’s exposure: Although the Kenyan Shilling has strengthened in late 2025 to around KSh 129, it remains sensitive to large debt repayments, which often forces the regulator (EPRA) to keep prices higher as a buffer.

[255]

@Moi_Mc

…quoted in Dollars, Tanzania’s stable exchange rate prevents the “shilling-price” from spiking unexpectedly.
Kenya’s exposure: Although the Kenyan Shilling has strengthened in late 2025 to around KSh 129, it remains sensitive to large debt repayments, which often forces the regulator (EPRA) to keep prices higher as a buffer.

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These are the complaints of a fool.

[Nubia]