The consumption of fuel and other petroleum products grew 2% in 2024, an increase attributed to the growth in demand of AVGAS, Jet A1, Fuel Oils and Lubricants, according to Petroleum Institute of Africa (PIA).
- •LPG demand has remained resilient with a 15% growth in 2024 as compared to the 8% increase witnessed in 2023.
- •As a result, there was a 24% decrease in kerosene consumption as consumers switch to cooking with cleaner LPG.
- •Jet A1 and Lubricants demand in 2024 grew by 4% and 3% respectively while Automative Gas Oil (AGO) and Premium Motor Spirit (PMS) demand remained constant with marginal increases under 1%.
“Private investments are expected to drive economic growth in the medium term amid sluggish growth in consumption particularly in the wake of the ongoing favourable trends in the drivers of consumption such as the strengthening Kenya Shilling, lower inflation and lower pump prices,” PIA said.
Retail outlets, resellers, civil aviation, transport and communication at 51.8%, 17.1%, 15.0% and 8.2% emerged as the top industry consumers.
Top gainers in the 2024 Retail Market segment compared to 2023 were RUBiS Energy, Hass Petroleum, Astrol and Aftah. Top gainers in the 2024 Resellers Market segment compared to 2023 were Petro, Dalbit, GAPCO, Towba, Sahara, Beenergy and Zacosia.
PIA notes that the growth in the petroleum sector was constrained by contractions in Construction and Mining and Quarrying activities.
Construction activities contracted by 2.0% while Mining and Quarrying posted a contraction of 11.1% in the quarter under review.
The growth was supported by notable performances in Agriculture, Forestry and Fishing (4.2%), Transportation and Storage activities (5.2%), Financial and Insurance activities (4.7%), Real Estate activities (5.5%), Wholesale and Retail activities (4.8%) and Accommodation and Food service activities (13.7%).
