Diesel and petrol prices drop but kerosene increases

The Energy Regulatory Commission (ERC) has now lowered the fuel prices following the signing of the Finance Bill 2018 by President Uhuru Kenyatta following a combative vote in Parliament.

Petrol will now sell at Ksh116 per litre in Nairobi while Diesel and Kerosene will retail at Ksh108 per litre.

However, the price of kerosene has increased by Ksh10 following an imposition of an anti-adulteration levy of Ksh18 per litre. 

“Pursuant to the Finance Act 2018, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) has been revised from 16% to 8%,” read a statement from ERC’s Director General Pavel Robert Oimeke.

“Accordingly, ERC has recalculated the maximum pump prices that will be in force from 21st September to 14th October 2018 taking into account the VAT at 8%.” 

Last week, ERC, in its monthly fuel prices review, dropped the price of super petrol by Ksh2.21 while the prices of diesel and kerosene have gone up slightly by Ksh0.39 and Ksh0.29 per litre respectively.

While signing the Finance Bill into law on Friday, President Uhuru Kenyatta gave his commitment to ensure proper utilisation of public resources.

MPs voted to pass a memorandum proposed by President Uhuru Kenyatta that increases taxes on various goods and services.

Parliament adopted the reservations during a messy sitting on Thursday, characterised by boos and jeers, bearing similarities to the enactment of Security Laws (Amendments) Bill, 2015.

With the victory, the executive has the power to raise up to Ksh130 billion through taxes including the eight percent levy on fuel products, that will see about Ksh17.5 billion realised.