The Energy and Petroleum Regulatory Authority (EPRA) has announced the fuel prices for the period between Monday, May 15 and Wednesday, June 14.
In the latest monthly review, the price of Super Petrol, Diesel and Kerosene increased by Ksh3.40 per litre, Ksh6.40 per litre and Ksh15.19 per litre respectively.
Super Petrol, Diesel and Kerosene thus retail at Ksh182.70, Ksh168.40 and Ksh161.13 respectively up from Ksh179.3, Ksh162 and Ksh145.94, respectively, in Nairobi.
“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows.
“Super Petrol, Diesel and Kerosene increase by Kshs.3.40 per litre, Kshs.6.40 per litre and Kshs.15.19 per litre respectively. The subsidy on Diesel and Kerosene has been removed,” stated EPRA in part.
EPRA added that the prices are inclusive of the eight per cent 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 average landed cost of imported Super Petrol increased by 8.63% from US$666.51 per cubic metre in March 2023 to US$724.01 per cubic metre in April 2023; Diesel decreased by 2.51% from US$705.82 per cubic metre to US$688.07 per cubic metre while Kerosene decreased by 1.13% from US$707.53 per cubic metre to US$699.54 per cubic metre,” added the authority.
In Mombasa, Petrol, Diesel and Kerosene rose to Ksh179.86, Ksh165.57 and Ksh158.30 respectively. Motorists in Nakuru will pay Petrol, Diesel and Kerosene at Ksh181.83, Ksh167.91 and Ksh160.65 respectively for the next one month.
In Eldoret, Petrol will sell at Ksh182.54, Diesel Ksh168.61and Kerosene at Ksh161.35.
President William Ruto on Sunday, May 14 argued that the doubling of fuel tax from 8 per cent to 16 per cent would benefit Kenyans in the long run.
“We are going to increase the VAT by 8 per cent for two reasons number one because having differential rates one at 8 per cent, others at 16 per cent poses an integrity problem, people use it as a loophole to manipulate numbers.
“This 8 per cent that we are adding is going to give us about Ksh50 billion it will begin to deal with the problem of roads across the country,” he explained.
He also noted that the high levies would remove loopholes in the fuel sector as well as free up money for development.
“When I came to the office I found that we had commitments of Ksh900 billion on the roads, I have worked with various departments and brought the number to Ksh680 billion.
“If I have to complete these roads, I need money. Everywhere I go, Kenyans tell me they need roads,” he explained why his administration needed the extra revenue from the fuel kitty.
Defending his government from allegations that the tax increase would hurt Kenyans, Ruto argued that it was well-balanced, adding that he made checks and balances to ensure that the increased tax is cushioned and does not affect Kenyans.
“I have removed three and a half road development levy on fuel and another 2 per cent on IDF fuel levy,” he explained.
EPRA Director General Daniel Kiptoo on Friday, April 14 dismissed the possibility of 160,000 metric tonnes of fuel received on Thursday, April 13 under the Government-Government agreement having an effect on the computation of monthly fuel prices.