The Energy And Petroleum Regulatory Authority (EPRA) has announced new higher prices following the signing into law of the Finance Act 2023.
The new prices are set to come into force starting July 1, 2023 and will cover the period between July 1 and July 14 when prices are usually reviewed.
However, confusion has gripped the nation on whether the new prices will be effected. This is because shortly before the prices were announced, the High Court in Nairobi suspended the implementation of the Finance Act.
The controversial Act that has been termed as punitive has increased the VAT charged on fuel from 8 per cent to 16 percent.
“Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol, Diesel and Kerosene has been revised from 8 per cent to 16 per cent effective 1st July 2023,” said EPRA. “Accordingly, EPRA Kenya has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023 taking into account VAT at 16 per cent.”
The new price changes increased by between Sh. 11 and Sh. 13 per litre of petrol, diesel and kerosene.
“The changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Sh.13.49, Sh.12.39 and Sh.11.96 per litre respectively,” said EPRA.
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A litre of petrol will now cost Sh. 195.53. A litre of diesel will cost Sh. 179.67 while a litre of kerosene will cost Sh. 173.44.
In an earlier ruling to a petition that was filed by activist and current Busia Senator Okiya Omtatah, Lady Justice Mugure Thande had ruled that she was satisfied that Omtatah’s application met a threshold for conservatory orders.
“I am satisfied that the application meets the test of conservatory orders and I do grant prayers 2 and 3 of the application until July 5, 2023, when the matter is scheduled for mention for directions,” Justice Thande ruled.
She had further directed that the applications be served upon all parties today Friday, June 30 and responses be filed and served by July 4, 2023.
