Low economic activity due to the COVID-19 Pandemic continues to lower fuel consumption, slumping demand for petrol, diesel, and jet fuel. Demand for Petrol and Diesel fell by 26.8%, and 26.4% respectively in April, as Kenya continues to experience low activity in the transport and manufacturing sectors.
The low demand has adversely affected the sale of oil all over the country, with filling stations in Nairobi recording dips of up to 70% in daily sales. However, kerosene consumption grew by 11.3% in April from 12,291 cubic meters in March.
An EPRA report seen by The Star shows Jet A1 fuel recorded the most significant drop in demand, with its uptake falling by 85.6%. This is a progressive drop in demand from 54,080 cubic meters in March to 7,784 cubic meters in April. The decline is because of the ban on local and international air travel affecting the aviation industry. Civil aviation accounts for 13.4 of the country’s total fuel consumption.
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Movement Restrictions Behind Low Fuel Consumption
The drop in overall fuel consumption is because of restricted movement within the country. Energy & Petroleum Regulatory Authority (EPRA) says that fuel consumption will only increase with an increase in economic activity.
While Kenya experienced low fuel prices for April, restricted movement in critical routes such as the Mombasa-Nairobi led to a significant drop in fuel consumption. As a result, the demand for petrol fell to 113,819 cubic meters from 154,627 cubic meters between March and April. Furthermore, lower manufacturing and industry activities lowered the demand for diesel by 26.8% to 162,479 cubic meters in the period under review.
In contrast, demand for kerosene has grown and is projected to keep growing given the looming increase in the price of Liquid Petroleum Gas (LPG).
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