The Energy and Petroleum Regulatory Authority (EPRA) is on Friday, June 30, set to announce reviewed fuel pump prices.
This follows President Ruto’s enactment of the Finance Act, 2023 on Monday. The Act includes a 16 per cent value-added tax (VAT) on gasoline, up from the initial 8 per cent.
“On 26th June 2023, H.E. the President Dr William Ruto signed into law the Finance Bill, 2023 introducing a 16 per cent VAT on petroleum products. Accordingly, EPRA will on 30th June 2023 release the reviewed petroleum prices in compliance with the finance act 2023,” the authority said in an announcement on Thursday.
Read Also: Effects of the 16% VAT Fuel on Kenyan Households
Currently, a litre of super petrol in Nairobi is going for around Ksh.182 while diesel and kerosene are selling at Ksh 167 and Ksh 161 respectively.
President Ruto said that the VAT increase was suggested by his economic advisory team, arguing it will give the government Ksh 50 billion in revenue collection.
“This 8 per cent we are adding will give us about 50 billion shillings and begin to deal with the problem of roads in our country, but to balance it out, I have removed on the same fuel, 3.5 per cent road development levy, 2 per cent of IDF, and removed 8 per cent VAT on gas,” he said in a joint media interview from State House, Nairobi on May 14.
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The people, however, are not inclined to agree with the state and their decisions. People with vehicles are filling their tanks with as much oil as they possibly can before the prices are renewed. Public transport vehicles have already drafted their increased fare costs to cushion themselves. Companies have written out budgets to include the increased cost of fuel which is set to increase the cost of production.
The revision of the fuel prices comes after the finance bill was signed by the president and officially became the Finance Act. Tougher times for Kenyans are ahead as the government aims to collect a revenue of 50 billion from the petroleum industry.
Read Also:Impact of Fuel Price as MPs Vote for Fuel VAT Increase
