Kenya: Fuel Prices Go Up As VAT Rates Double

Kenya revised fuel prices upward from July 1, 2023, after the East African nation increased the Value Added Tax on fuel from eight per cent to 16 per cent.

The cost of petrol has gone up by KShs13.49 per litre while diesel went up by KShs12.39 per litre with the kerosene price going up by KShs11.96 per litre.

In Nairobi, the capital of Kenya, petrol and diesel are sold at KShs195.53 per litre and KShs179.67 per litre respectively while kerosene is sold at KShs173.44 per litre.

In Mombasa, super petrol is sold at KSh192.48, diesel at KSh176.63, while kerosene is selling at KSh170.40 per litre.

At the same time, major cities, including Nakuru and Kisumu, registered an increase in the price of petroleum products per litre. 

In Nakuru, a litre of super petrol cost KSh194.60, diesel at KSh179.14 while kerosene is sold at KSh172.93.

Meanwhile, in Kisumu, a litre of super petrol is sold at Ksh195.34, diesel at KSh179.89 and kerosene at KSh173.68.

In other areas such as Laisamis, Merille and Korr in Marsabit County, the prices for super petrol hit over Ksh200 per litre.

Previously, petrol was sold at KShs182.04 per, diesel at KShs167.28 per litre and kerosene was sold at KShs161.48 per litre.

The new rates would be in place until July 14 when the energy regulator, Energy and Petroleum Regulatory Authority (EPRA), would hold a scheduled monthly meeting to review the prices.

EPRA released the new prices minutes after the High Court suspended the implementation of the Act, days after President William Ruto assented to it, paving the way for the doubling of VAT on fuel from 8.0 per cent.

“Under the Finance Act, 2023, VAT on super petrol, diesel and kerosene has been revised from 8 per cent to 16 per cent effective 1st July 2023. Accordingly, EPRA has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023, taking into account VAT at 16 per cent,” the energy regulator said Friday.

Source: https://energynewsafrica.com