In Summary
  • The ERC announced a Sh0.39 and Sh0.29 increase in the price of a litre of diesel and kerosene respectively.
  • Petrol, diesel and kerosene carry a heavy load of levies and taxes, raising hundreds of billions in revenues for the government.

Motorists can now breathe a sigh of relief after the government announced a slight decrease in fuel prices.

Nairobi motorists will pay Sh2.21 less on a litre of petrol in the latest price revisions by the Energy Regulatory Commission (ERC).

However, the ERC announced a Sh0.39 and Sh0.29 increase in the price of a litre of diesel and kerosene respectively.

The prices include the recent 16 percent value added tax (VAT) imposed on petroleum products.

ERC director-general Pavel Oimeke was however quick to point out the possibility of further revisions on the tax that has led to a public outcry.

President Uhuru Kenyatta on Friday proposed that the VAT be halved.

“The prices are inclusive of value added tax at 16 percent in line with the provisions of the VAT Act 2013. Nevertheless, the commission shall publish new prices whenever the rate of VAT is varied by law,” Mr Oimeke wrote in the price revision notice.

Nairobi motorists will now buy a litre of petrol at Sh125.59, diesel at Sh115.47 and kerosene at 97.70.

FUEL ADULTERATION

ERC gives monthly price revisions considering the weighted average cost of imported refined petroleum products, with the landed cost of petrol said to have dropped 2.33 percent while that of diesel rose by 0.40 percent in August.

The price of kerosene was however increased despite a 0.60 percent drop on its landed cost, perhaps to tame adulteration of fuel.

Before the VAT was loaded on September 1, super petrol was retailing at Sh113.73 while diesel, which is used in heavy machinery and power generation, was retailing at Sh102.74 per litre in Nairobi.

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