EPRA Set to Increase Fuel Prices Tomorrow
After the Finance Act 2023 takes effect on Friday, June 30, the Energy and Petroleum Regulatory Authority (EPRA) will issue new fuel pricing.
In a statement released on June 29th, EPRA emphasised the cause of the adjustment and cited the increase in fuel’s Value Added Tax (VAT) from 8% to 16%.
The cost of basic home goods as well as the national revenue are anticipated to be severely impacted by the additional 8% VAT on the products.
On Wednesday, June 14, less than two weeks after fuel prices were reduced, EPRA will reveal the new prices.
The fuel’s VAT is expected to increase the price of petrol in pricing ratio settings; the extra 8% will cost Ksh14.59.
To put it in perspective, petrol would retail for Ksh196.9 per litre in Nairobi as opposed to the existing Ksh182.4 rate. At fuel stations in Nairobi, diesel is anticipated to rise from Ksh167.28 to an average of Ksh180.6624 per litre.
From its current Ksh161.48 average price, kerosene will now cost Ksh174.39.
President William Ruto claims that the 16% increase will make fuel costs more competitive, luring in international investment as a result.
The National Assembly’s Committee on Finance and Planning stated that the benefits of raising the VAT tax exceeded the drawbacks when presenting the bill to Parliament.
Kuria Kimani, chair of the finance committee, emphasised the need for standardising VAT because the eight percent had complicated matters for both the government and oil marketing corporations.
EPRA Set to Increase Fuel Prices Tomorrow
