Following the most recent assessment by the Energy & Petroleum Regulatory Authority (EPRA), Kenyans will begin paying increased rates for the three petroleum products as of Monday, May 15.
The average cost of imported refined petroleum products has caused the landing cost of imports to vary in price, according to a statement released on Sunday by EPRA Director General Daniel Bargoria.
The price of super gasoline in Nairobi’s capital has now jumped to Ksh. 182.70 a liter, while the costs of diesel and kerosene have gone up to Ksh. 168.40 and Ksh. 161.13, respectively, due to the upward revision in the cost of all three fuel products.
The subsidy for diesel and kerosene has been eliminated, though.
According to the Finance Act of 2018, the Tax Laws (Amendment) Act of 2020, and the updated rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020, Bargoria continued, the prices are inclusive of the 8% Value Added Tax (VAT).
After President William Ruto justified his government’s plan to raise the VAT on petroleum goods from 8% to 16% on Sunday, this has happened.
In a joint media interview from State House, Nairobi, Ruto, who had on the presidential campaign road last year indicated a need to rethink VAT on fuel, said the aim is to close loopholes unscrupulous actors use and provide the government more revenue.
By Dorax Moraa
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