On 1st September 2018, the Energy Regulatory Commission announced that the VAT on Super Petrol (PMS), Diesel (AGO) and Illuminating Kerosene (IK) would come into effect, increasing the cost of fuel.
The rise was pursuant to the Value Added Tax (VAT) Act of 2013 and Clause 31 of the Finance Act 2016 where the commission recalculated the maximum pump prices that will be in force from 1st - 14th September 2018.
After the new prices took effect in different parts of the country, the Motorists’ Association of Kenya called for Kenyans to participate in a strike boycotting the increased fuel prices.
In a statement to newsrooms, the association's Chairperson Peter Murima disclosed that Treasury CS Henry Rotich had disregarded the notice by Parliament to postpone the VAT to 2022.
“We, therefore, wish to call upon motorists to again express their anger tomorrow Monday 3rdand Tuesday 4th and if possible Wednesday by boycotting fuel and participating in a strike of not going to work in the morning as much as possible.
“All Wednesday mornings henceforth will be boycott day until a time when we shall get fair fuel prices in Kenya,” the statement read in part.
The association further faulted the calculation by ERC noting that new figures were “aimed at robbing Kenyans a further Ksh.3.10 translating to a whopping Ksh.450 million daily.”
“The correct calculation should be based on landed cost 57.82 + distribution cost 3.9 + merchants margin 10.89 = 72.61. 72.61*16% = 11.62,” Murima conveyed.
Following the latest revision, Nairobi motorists will now pay Ksh 127.80 for petrol.
Mandera motorists will pay the highest for super petrol at Ksh.141.61 followed by Wajir (136.06), Liboi (135.24), Marsabit (134.71), Garissa and Maua (132.37), Isiolo (131.03), Meru (130.49), Mtito Andei (130.45) and Nkubu (130.21).
