ERC releases new fuel prices, Ksh.127 for super petrol in Nairobi

The energy regulator has finally released new fuel prices that reflect the 16percent Value Added Tax as ordered by Treasury Cabinet Secretary Henry Rotich.

Also Read: New fuel prices must be implemented from September 1, Rotich says

Nairobi motorists will now pay Ksh.127.80 while those in Mombasa will pay Ksh.124.49, according to a statement from the Energy Regulatory Commission (ERC) released on Saturday.

Also Read: COTU threatens strike over new fuel prices

“Pursuant to the Value Added Tax (VAT) Act of 2013 and Clause 31 of the Finance Act 2016, the VAT on Super Petrol (PMS), Diesel (AGO) and Illuminating Kerosene (IK) comes into effect on 1st September 2018,” the statement reads.

MPs had earlier suspended the move to increase tax on petroleum products and postponed the directive by two years. However, CS Rotich remained adamant that the new law would take effect on September 1.

The International Monetary Fund (IMF) has been pushing the government to end the suspension that was announced two years ago and raise its revenues as budget deficits and debt continue to spiral. Fuel products are part of Kenya’s most taxed commodities.

The ERC directive issued on Saturday will now see diesel retail at Ksh.115.08 while a litre of Kerosene will cost Ksh97.41 in Nairobi.

Also Read: Matatu fares to be increased in September over new tax levy

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).

Super petrol prices for other towns are as follows:

• Nakuru Ksh.128.46
• Eldoret Ksh.129.64
• Kisumu Ksh.129.71
• Thika 127.94
• Nyeri 129.36
• Machakos 127.94
• Narok 129.26
• Voi 126.09
• Namanga 129.46