• Saturday, 22 June 2024
Kenyans to experience  More Pain At The Pump As Fuel Prices Increase, Diesel And Kerosene Subsidies Removed

Kenyans to experience More Pain At The Pump As Fuel Prices Increase, Diesel And Kerosene Subsidies Removed

Kenyans will start paying higher prices for the three petroleum products effective Monday, May 15, in the latest review by the Energy & Petroleum Regulatory Authority (EPRA).

 

In a statement on Sunday, EPRA's Director General Daniel Bargoria said that the increase is attributable to the average cost of imported refined petroleum products which has seen the landing cost of imports varying in prices.

The landing cost of Super Petrol increased by 8.63% in March 2023, Diesel decreased by 2.51% while Kerosene also dropped to 1.13%.

 

This will see Super Petrol, Diesel and Kerosene increase by Kshs.3.40 per litre, Kshs.6.40 per litre and Kshs.15.19 per litre respectively, a review which will be in force upto June 14, 2023.

The upward revision in the cost of all three fuel products now sends the cost of super petrol in the Capital Nairobi to Ksh.182.70 for Petrol prices per litre, while Diesel and Kerosene have increased to Ksh.168.40 and Ksh.161.13 respectively. 

However, the subsidy on Diesel and Kerosene has been removed.

Bargoria added that the prices are inclusive of the 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.

This comes after President William Ruto, on Sunday, defended his government’s decision to increase VAT on petroleum products from eight per cent to 16 per cent.

In a joint media interview from State House, Nairobi, Ruto, who had on the presidential campaign trail last year noted a “need to rethink” VAT on fuel, said the move is to seal loopholes rogue players use and give the government more revenue.

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