EPRA to announce new fuel prices as 16% VAT takes effect

The Energy and Petroleum Regulatory Authority (EPRA) is on Friday, June 30, set to announce reviewed fuel prices.

This following President William Ruto’s enactment of the Finance Act, 2023 on Monday. The Act comprises a 16 per cent value-added tax (VAT) on gasoline, up from 8 per cent.

“On 26th June 2023, H.E. the President Dr William Ruto signed into law the Finance Bill, 2023 introducing a 16 per cent VAT on petroleum products. Accordingly, EPRA will tomorrow 30th June 2023 release the reviewed petroleum prices in compliance with the finance bill 2023,” the authority said in an announcement on Thursday.

Currently, a litre of super petrol in Nairobi is going for around Ksh.182 while diesel and kerosene are selling at Ksh.167 and Ksh.161 respectively.

President Ruto has said the VAT increase on petroleum products was suggested by his economic advisory team, arguing it will give the government Ksh.50 billion.

“This 8 per cent we are adding will give us about 50 billion shillings and begin to deal with the problem of roads in our country, but to balance it out, I have removed on the same fuel, 3.5 per cent road development levy, 2 per cent of IDF, and removed 8 per cent VAT on gas,” he said in a joint media interview from State House, Nairobi on May 14.