Kenya’s fuel consumption took a hit last year, with data from the Energy and Petroleum Regulatory Authority (EPRA) showing a decrease in demand. Kenyans consumed 4.3 million cubic meters of fuel in 2023, down from 4.5 million cubic meters in 2022. This drop coincided with the government’s decision to increase fuel taxes, leading to soaring prices of super petrol, diesel, and kerosene, making them unaffordable for many.

The depreciation of the local currency against major foreign currencies, such as the US Dollar, also contributed to the rise in fuel prices, as oil marketing companies passed on the additional costs to consumers. Despite these challenges, EPRA noted a slight increase in fuel demand in December, attributed to heightened travel during the festive season.

Overall, domestic demand for petroleum products decreased by 3.01% to 2,717,699.16 m3 compared to the previous year. EPRA suggested that this decline was due to suppressed demand. However, there were spikes in fuel consumption in August and December, with the highest demand for diesel recorded in August and for petrol in December.

Kenya Pipeline Company, responsible for handling petroleum products in the country, saw an increase in fuel volume compared to the past three years. In 2023, the company handled 4.1 million cubic meters of fuel, up from 3.7 million cubic meters in 2022. This surge was attributed to a rise in the transit market volume, with KPC handling about 95% of imported petroleum products.

Despite the challenges faced by the fuel industry in Kenya, there are signs of resilience and adaptability. As the country navigates through economic fluctuations and global market changes, stakeholders in the energy sector continue to work towards ensuring a stable and sustainable fuel supply for the nation.