The Energy and Petroleum Regulatory Authority (EPRA), on Sunday 14, 2023, announced increment on fuel prices. This comes at a time, when President Ruto already revealed state plans to double fuel VAT during an interview with media.
Ruto, hinted the state plan, targeting to increase VAT charged on fuel from 8% to 16%.
According to the press release issued by (EPRA), the price increment is subjected to fuel products that is; petrol, diesel and kerosene and shall be effective for the next 30-days.
As things currently stand, the remaining subsidy on diesel and kerosene has been removed. A litre of petrol has increased by Sh3.40, diesel by Sh6.40, and kerosene by Sh15.19.
This means that a litre of petrol in Nairobi now costs Sh182.70, diesel Sh168.40, and kerosene Sh161.13. On the other hand, the landed cost of petrol per litre, as explained by EPRA, was Sh101.83, Sh99.83 for diesel and Sh98.04 for kerosene.
According to justification by the regulator, the shot up in fuel prices and the difference between the landed prices and the retail costs, attributes to distribution and storage, profit margins and taxes and levies.
“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,” the statement read in part.
As far as the huge skyrocketed prices are concerned, also explained by the Regulatory body, it stems from the depreciation of the Kenyan shilling against the US dollar as well as the rising cost of crude oil in the global market.
“The mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.47% from Sh139.61 per US$ in March 2023 to Sh138.96 per US$ in April 2023,” EPRA further explained
