Key Takeaways:
- EPRA maintains current fuel prices in Kenya
- Recent tax increases continue to offset minor price reductions
- Consumers express concern over limited relief in living costs
The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has announced that fuel prices will remain unchanged in the latest review cycle. This decision comes amid ongoing discussions about the impact of recent tax hikes on the cost of living for Kenyan citizens.
Current Fuel Prices in Nairobi
- Super Petrol: Ksh188.84 per litre
- Diesel: Ksh171.60 per litre
- Kerosene: Ksh161.75 per litre
These prices reflect minimal decreases from the previous month, with Super Petrol seeing a Ksh1 reduction, Diesel dropping by Ksh1.50, and Kerosene decreasing by Ksh1.30.
Impact of Recent Tax Changes
Road Maintenance Levy (RML)
The government recently increased the RML from Ksh18 to Ksh25 per litre for both petrol and diesel. This Ksh7 per litre increase has significantly offset potential price reductions.
Value Added Tax (VAT)
The controversial Finance Act 2023, which doubled VAT on fuel from 8% to 16%, was recently nullified by the High Court. This nullification is expected to impact future pricing cycles positively.
Government Response
Petroleum Principal Secretary Mohamed Liban acknowledged the limited impact of recent price cuts. He stated that before the RML increase, projected price decreases were more substantial:
- Super Petrol: Ksh5.27 per litre decrease
- Diesel: Ksh6.74 per litre decrease
“The imposition of the higher levy significantly reduced the extent of these cuts,” Liban explained to the Senate Energy Committee.
Consumer Reactions
Kenyans have expressed mixed reactions to the latest price adjustments. While any reduction is welcomed, many feel that the relief is minimal compared to the overall increase in living costs.
Future Outlook
- The current pricing cycle will run until September 14, 2023.
- The nullification of the Finance Act 2023 could lead to more significant price reductions in future cycles.
- Experts anticipate potential fuel cost reductions of more than Ksh10 per litre due to the VAT decrease.
Conclusion
While the EPRA’s decision to maintain current fuel prices offers some stability, the underlying issues of taxation and levy increases continue to impact Kenyan consumers. As the government navigates these complex fiscal challenges, citizens remain hopeful for more substantial measures to address the rising cost of living.
