EPRA Increases Fuel Prices Despite Suspension of Finance Act

The Energy and Petroleum Regulatory Authority (EPRA) on Friday, June 30, announced new fuel prices that reflect the recent law (Finance Bill 2023) that doubled VAT on fuel products from 8% to 16%. 

In this review that takes effect from midnight July 1, 2023, the retail price of a litre of Super Petrol has increased by Ksh13.29, Diesel by Ksh12.47 and Kerosene has increased by Ksh11.96 per litre, up from Ksh161.48.

In Nairobi, a litre of Super Petrol will retail at Ksh195.33 - up from Ksh182.04; while diesel will retail at Ksh179.67, up from Ksh167.20. Kerosene will now retail at Ksh173.44. 

Compare All Logbook Loans on Money254👇

In Mombasa, Super Petrol will retail at Ksh192.48, Diesel Ksh176.63 and Kerosene Ksh170.40. A litre of Super Petrol will retail at Ksh195.34 in Kisumu, Diesel Ksh179.89 and Kerosene Ksh173.68.

The increased tax on fuel products came even as the High Court in Nairobi temporarily suspended the implementation of the Finance Act, which became law after the enactment of Finance Bill 2023. The ruling was made on Friday, June 30.

President William Ruto’s assent of Finance Bill 2023 introduced a number of levies and additional tax on commonly used products. The President signed the bill into law on Monday, June 26. 

The new law, passed by the National Assembly in a heated session held on Wednesday, June 21, increased VAT on fuel products from eight to 16 percent. 

A number of stakeholders had called on the government to shelve the increase of VAT on fuel products - citing the already high prices occasioned by shocks in the global markets. 

The increase in the cost of fuel is expected to spiral into other sectors of the economy - including cost of electricity, food and consumer goods that are heavily reliant on electricity and transport.

President William Ruto defended the increased VAT, arguing that the standardized VAT would make the market more competitive and ultimately lower the cost of fuel in the long term. The National Assembly's Finance Committee Chairman Kuria Kimani further indicated that the move would help spur the production of green energy.

Also Read: "Ups and Downs: My Six Months of Saving Ksh300,000"