Govt Announces Major Drop in Fuel Prices

File image of a fuel attendant at work at a petrol station.
File image of a fuel attendant at work at a petrol station.
File

  

The Energy and Petroleum Regulatory Authority (EPRA) on Tuesday, April 14 announced significant reductions of the prices of petroleum products in Kenya.

The wholesale and retail prices announced will be in force from Wednesday, April 15 to May 14.

The maximum allowed petroleum pump prices in Nairobi for Super Petrol, Diesel and Kerosene were decreased by Kshs18.00, Kshs4.09 and Kshs18.18 per litre respectively.

Beginning midnight, Super Petrol, Diesel and Kerosene will retail at Ksh92.87, Kshs97.56 and Kshs77.28 respectively in Nairobi.

A section of the Thika Superhighway at Allsops
A section of the Thika Superhighway at Allsops
Simon Kiragu

Kenyans' relief over the decrease may, however, be short-lived as a special sitting of parliament on Tuesday, April 14 is slated to discuss the Tax Laws (Amendment) bill forwarded by the executive that may affect the price of fuel.

The proposed amendments include excise duty, fees and other charges in computing the taxable value for fuel. 

The new formula of calculating the taxable value for fuel proposed would lead to an increase in the duty on petrol and diesel by at least Sh3.30 and Sh2.50 per litre respectively. Tax on kerosene will increase by Sh2.50 a litre.

The bill also introduces Value Added Tax on Liquefied Petroleum Gas (LPG).

The changes are among a raft of measures proposed by the executive in a bid to cushion the economy from the effects of the Coronavirus (Covid-19), with many of the proposals highlighted by President Uhuru Kenyatta when he announced tax relief measures in March.

Law Society of Kenya (LSK) President Nelson Havi had called for further scrutiny into the bill in a letter to the Clerk of the National Assembly, noting it delved into proposals beyond those announced by Uhuru as they had expected.

They noted that some of the proposed amendments would have far-reaching effects on the lives of Kenyans, identifying 12 areas of the bill to be looked at.

“It was expected that the bill would only cover the implementation of the changes proposed by President Uhuru Kenyatta. Our review of the bill, however, shows  otherwise.

“We note that there is introduction of significant and far-reaching measures which will impact the public negatively,” the letter read in part.

In Mombasa, Super Petrol, Diesel and Kerosene will retail at Ksh90.40, Ksh95.09 and Ksh74.82 respectively

In Kisumu, maximum pump prices for Super Petrol, Diesel and Kerosene were set at Ksh93.67, Ksh98.49 and Ksh78.27 respectively.

For Nakuru, Super Petrol, Diesel and Kerosene will retail at Ksh92.71, Ksh97.53 and Ksh77.32 respectively.

Eldoret, on the other hand, will have Super Petrol, Diesel and Kerosene retail at Ksh93.68, Ksh98.50 and Ksh78.29.

A section of the Thika Superhighway at Survey Underpass
A section of the Thika Superhighway at Survey Underpass
Kenyans.co.ke
Simon Kiragu