EPRA raises fuel prices to record high

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TBEN will have to dig deeper into their pockets after the Energy and Petroleum Regulatory Authority (EPRA) announced an upward revision in fuel prices for the period September 15 to October 14.

The price of Super Petrol rose by Ksh20 to a record high of Ksh179.30 per liter, diesel rose by Ksh25 to Ksh165, while kerosene rose by Ksh20 to Ksh147.94 in Nairobi.

“Taking into account the weighted average cost of imported refined petroleum products and in line with the government policy to phase out the subsidies on petroleum fuels, the changes in the maximum allowable prices for petroleum pumps in Nairobi are as follows: Premium gasoline, diesel and kerosene are increasing by Ksh 20.18 per liter, Ksh 25 per liter and Ksh 20 per liter respectively,” read the statement in part.

In Mombasa, a liter of petrol, diesel and kerosene goes for Ksh176.98, Ksh162.76 and Ksh145.69 respectively.

Motorists queue for gasoline at National Oil in the town of Nyamira.

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Kenya News Agency

Motorists in Nakuru will bid farewell to Ksh178.62 for a liter of gasoline, Diesel for Ksh164.83 and Kerosene for Ksh147.79.

In Eldoret, gasoline, diesel and kerosene will trade at Ksh179.50, Ksh165.72 and Ksh148.67.

Some areas will buy gasoline at a record high, between Ksh180 and Ksh192. These areas include Lamu, Laisamis, Meru, Mtito Andei, Elwak, Mandera, Kericho, Kisii, Nyamira, Homa Bay, Migori, Busia, and Kimilili.

EPRA made the announcement late at night, a few minutes before midnight on Wednesday, September 14, in what appeared to be a delay caused by a stalemate between key stakeholders.

According to EPRA, the prices include 8 percent value added tax (VAT) in accordance with the provisions of the Finance Act 2018, the Tax Laws Amendment Act 2020 and the revised excise rates adjusted for inflation according to the EPRA. Legal Notice No. 194 of 2020.

“The average land cost of imported Super Gasoline fell 24.31% from $1,074.1 per cubic meter in July 2022 to $842.91 per cubic meter in August 2022; Diesel fell 13.9% from $1,103.03 per cubic meter. meters to $949.68 per cubic meter, while kerosene fell by 19.07% from $1,111.53 per cubic meter to $899.56 per cubic meter,” explains EPRA.

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Furthermore, the government will use the money raised under the Petroleum Development Levy to compensate Oil Marketing Companies (OMCs) for the difference in costs.

Fears ran high after President William Ruto announced plans to end the fuel subsidy program, saying the move was unsustainable.

In his inaugural address, the president pointed out that taxpayers have spent a total of Ksh 144 billion, including Ksh 60 billion in the past four months to support the program.

He added that if the subsidy continues until the end of the fiscal year, the amount would increase to Ksh280 billion – a further burden on the taxpayer.

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“If the subsidy runs until the end of the fiscal year, it will cost the taxpayer Ksh 280 billion, equivalent to the entire development budget of the national government,” Ruto noted.

The statement caused concern among stakeholders, including those in the transportation sector, who would face price hikes.

Kenya Transporters Association Limited (KTA) had urged the head of state to maintain the fuel subsidy to protect TBEN from the devastating effects.

The association noted that a rise in fuel prices would drive up the cost of essential goods and inflation.

“Any increase in fuel costs, direct or indirect, results in an increase in the prices of essential goods consumed and services rendered for the common con man. We kindly request the new government to continue to support the citizens by continuing to fuel subsidize, even in light of government revenue shortfall,” according to KTA.

File image of a gas station

An undated image of a gas station in Nairobi.

File