HomeBreaking NewsMore Pain at The Pump as Gov't Increases Fuel Prices

More Pain at The Pump as Gov’t Increases Fuel Prices

The Energy and Petroleum Regulatory Authority (EPRA) has altered fuel prices as a result of the implementation of a 16% VAT.

In Nairobi, EPRA has raised the price of petrol by Sh13.49, diesel by Sh12.39, and kerosene by Sh11.96.

This means that, with the exception of Mombasa, the rest of the country will most likely pay more.

“Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) has been revised from 8% to 16% effective 1 July 2023,” the statement read.

“EPRA has recalculated the maximum pump prices that will be in force from 1″ July to 14th July 2023 taking into account VAT at 16 per cent.”

Super fuel will cost Sh192.48 in Mombasa, diesel Sh176.63, and kerosene Sh170.4.

Super Petrol will cost Sh195.34 in Kisumu, diesel will cost Sh179.89, and kerosene will cost Sh173.68.

Super fuel will cost Sh194.60 in Nakuru, diesel Sh179.14, and kerosene Sh172.93. Super fuel will cost Sh195.36 in Eldoret, diesel Sh179.69, and kerosene Sh173.69.

Petroleum goods were previously subject to an 8% VAT.

This comes around two weeks after EPRA announced revised June-July fuel pricing. The price increase was scheduled to last from June 15 through July 14, 2023.

The increase is the outcome of the Finance Act 2023, which sets the VAT on fuel at 16%.

However, the High Court on Friday stayed the implementation of the Finance Act 2023.

The Act is the result of a finance Bill approved by Parliament last week and signed into law by President William Ruto on Monday.

Lady Justice M Thande stated in her decision that Senator Omtatah’s plea met the threshold for conservatory orders.

“I am satisfied that the application meets the test of conservatory orders and I do grant prayers 2 and 3 of the application until July 5, 2023, when the matter is scheduled for mention for directions,” Justice Thande ruled.

The court also imposed interim orders banning the respondents and interested parties, as well as their representatives, from enforcing the Finance Act, 2023.

Thande also instructed that all parties be served with the applications today, Friday, June 30, and that replies be submitted and served by July 4, 2023.

 

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