The Energy Regulatory Commission (ERC) has revised the fuel prices to align with the 8 per cent value added tax.
This will see Super Petrol retail at Sh116.79 in Nairobi, Sh8.80 lower from Sh125, while Diesel will retail at Sh108.12, Sh7.30 lower from Sh115.47. Kerosene will now retail at a Sh108.41, up Sh10.71 from Sh97.70 in the prices
The change in fuel pricing comes only hours after President Kenyatta signed into Law the finance bill 2018 which will see the number of tax go up from next month.
ERC say the calculations have taken into account the anti-adulteration levy of Sh18 per litre on Kerosene in line with the finance Act 2018.
‘’Pursuant to the finance Act 2018, the value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) has been revised from 16 per cent to 8 per cent. Accordingly ERC has recalculated the maximum pump prices that will be in force from 21st September to 14th October 2018 taking into account the VAT at 8 per cent.’’ The Regulator said in statement.
The Finance bill 2018 was passes amid acrimony and drama in parliament with legislators divided over the proposals by the president, with members walking out of the chamber to ensure there was quorum to oppose the president’s proposals which required at least two thirds majority for it to be overturned.
The VAT rise is part of the government initiative to raise revenue in an effort to repay the country’s public debt.
