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State to up taxes on kerosene to fund gas, cut fuel adulteration

Pupils from the Samburu confirm they have completed their home work correctly using a kerosene lamp. Increasing taxes on the fuel will hurt the poor more. [Photo:George Mulala]

Government will impose heavy taxes on kerosene in a move that could hurt low-income urban and rural households. Most of them use the fuel for cooking and lighting. The Energy Ministry expects to raise Sh7 billion from the planned taxes and duties on kerosene that will be used to develop the Liquefied Petroleum Gas (LPG) sub-sector.

The Senior Petroleum Economist at the Ministry of Energy and Petroleum, Mr Joseph Wafula, said taxes on kerosene are meant to discourage cartels from using the fuel to adulterate diesel and super petrol. It is also expected to grow the use of LPG, whose uptake in Kenya has for years stagnated at about 80,000 tonnes per year. This has been blamed on the high cost of acquiring equipment such as the gas cylinders and cookers.

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