Fuel prices are set to increase significantly after the National Assembly Finance Committee agreed to increase the Road Maintainance Levy (RML).

In its report to Parliament, the Committee recommended increasing the levy from the current charge of Ksh18 to Ksh25 per litre of fuel.

The RML is usually charged on every litre of fuel with the money allocated to various road agencies for maintenance works.

As detailed by the Committee led by Molo MP Kuria Kimani, the increase was necessitated by two major factors including recent budgetary proposals by the Transport Cabinet Secretary Kipchumba Murkomen.

In particular, the committee highlighted that various road agencies needed funding to repair roads amidst a fall in the levy collection.

"KRA collected Ksh84.143 billion in 2022/23, but the performance of the levy in 2023/24 has been negatively affected by the demand effects of the high fuel prices and the exchange rate depreciation.

"The fall in the collections under the Road Maintenance Levy has continued to affect the repair and maintenance of highways, urban, and rural roads. Recent el nino linked heavy rains and flooding have further worsened the extent of road destruction in the country," read the report in part.

On the other hand, it was explained that the RML has not been reviewed since its introduction in 2017.

Therefore, owing to the changes in market dynamics, it would be prudent to review the levy upwards as road agencies address the current budgetary needs.

"The committee further recommends that the expected increase in local appropriations in aid (AIA) to the State Department for Roads may be accompanied by a reduction in net GOK (exchequer) allocation to the State Department," read the report in part.

Owing to the proposal, it is expected that Super Petrol, Diesel, and Kerosene will increase by Ksh7.

Therefore, Super Petrol will increase from the current Ksh189.84 to Ksh196.84. Diesel on the other hand will increase from Ksh173.10 to Ksh180.10.

Kerosene will also increase from the current price of Ksh163.05 to Ksh170.5.

With the increase in pump prices, Kenyans are also expected to pay more for matatu fares. Prices of basic commodities could also increase owing to the increase in transportation costs.