Kenyans should get ready for new fuel prices from July 1 following announcement by the Energy and Petroleum Regulatory Authority (EPRA) to review maximum petroleum pump prices on Friday.
The regulator said the review coming less than a month of the regular adjustments follows passing into law Finance Bill 2023. The bill signed into law by President William Ruto on 26 June introduces 16 per cent VAT on petroleum products.
“Accordingly, we will on June 30 release the reviewed petroleum prices in compliance with finance bill 2023,” said EPRA in a social media notice.
The new law increases tax on petrol, diesel, and kerosene from eight per cent to 16 per cent in government’s measure to finance Kenya Kwanza administration’s Sh3.6 trillion 2023/4 budget.
The new law has elicited debate across Kenya’s political divide with opponents terming it a bad move likely to burden citizen currently operating on tight budget due high cost of living. Opposition leader Raila Odinga this week called on Kenyans to withhold tax payments to the government to protest signing into law the Finance Bill.
Raila claimed that by signing the bill into law, President William Ruto had ignored people’s call to the government not to inflict more pain on the cost of living.
Advocates of the new law argue on its importance in spurring the economy and in helping address the runaway public debt, high cost of living and high rate of unemployment. Likening the current economic status of the country to a company approaching insolvency, Vice Chairperson Departmental Committee on Finance and National Planning, Benjamin Langat told the House that Kenya has no choice but to raise revenue to become self-reliant.
“Kenya has two choices; to either close down or inject more capital from the shareholders. Kenyans are the shareholders and they have to endure some little pain as we seek to enhance our revenue collection to meet our national obligations and address the competing national priorities”, said.
During the latest fuel prices review, the Energy and Regulatory Authority (EPRA) adjusted upwards prices of Kerosene by Sh0.35.
Super Petrol retails at Sh182.04 per litre in Nairobi while Kerosene and Diesel retail at Sh161.48 per litre and Sh167.28 per litre in the capital city.
In Mombasa, Super Petrol, Diesel and Kerosene retail at Sh179.20 per litre, Sh164.45 per litre and Sh158.65 per litre respectively. In Kisumu, Super Petrol, Diesel and Kerosene retail at Sh181.87 per litre, Sh167.49 per litre and Sh161.70 per litre respectively.
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