A surge in demand for premium fuel brands in Kenya has raised the value of total imports from Netherlands and Belgium by Sh24 billion in the quarter ended March this year, new data shows, signaling shifts in consumer habits amid a growing number of high-end vehicles in the region.
Data from the Kenya National Bureau of Statistics (KNBS) shows that the value of imports from two countries jumped three times from Sh12.11 billion in the same period last year.
The surge is attributed to motor-spirit premium, commonly known as Shell V-Power and Total Excellium, whose importation is not done through the government-to-government (G-to-G) deal that Kenya signed with three Gulf oil majors.
Shell V-Power is the dominant premium brand of petrol locally and is exclusively sold by Vivo Energy Kenya—the retailer of Shell-branded petroleum products in the country. Excellium Petrol is the brand name of premium petrol sold by TotalEnergies Marketing Kenya.
“Specifically, there was a surge in imports of motor spirit (gasoline) premium from these two sources (Netherlands and Belgium),” KNBS says in the report.
KNBS did not give a breakdown of the value of premium petrol imported from the two Western European economies. The value of imports from Belgium in the quarter to March was Sh16.23 billion, a 325.9 percent jump from Sh3.81 billion in the same period a year ago while that from the Netherlands grew 141 percent to Sh19.98 billion from Sh8.29 billion in the same period.
Increased importation of V-Power also signals a growth in the number of high-end vehicle brands such as Volkswagen, Volvo, and Audi on the Kenyan and regional roads. These models mostly use premium petrol.
Vivo Energy said that it has noted increased demand for V-Power, both locally and regionally.
“Over time, Vivo Energy Kenya has seen a gradual increase in the consumption of Shell V-Power, as new vehicles enter the Kenya market and the region,” the firm said in a statement.
Vivo Energy says that it imports Shell V-Power from Europe, the Gulf region, and India.The rise in imports of premium petrol came despite the commodity being costlier than petrol, where the price difference has traditionally been upwards of Sh10.
A litre of V-Power is currently going for Sh199.5 compared to Sh188.80 per litre of petrol in the capital city. A litre of Total Excellium is going for sh188.80 a litre.
Unlike petrol, diesel, and kerosene, prices of premium petrol are not regulated by the Energy and Petroleum Regulatory Authority (Epra).
Premium petrol is excluded from the government-to-government deal through which Kenya gets petrol, diesel, and kerosene on a 180-day credit period from Saudi Aramco, Sudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company.
The exclusion of premium fuels from the G-to-G means that the East African region still relies on Vivo Energy and TotalEnergies Marketing Kenya for the supply of premium petrol.
