How Do Kenyan Taxpayers Feel About the Fuel Levy Hike?

The Energy Regulatory Commission (ERC) announced new fuel prices that have were affected from July 15th to August 14th 2016, after Sh6 rise in the Road Maintenance Levy was included in the prices of super petrol and diesel.

The ERC went ahead and gave a breakdown of the prices for Super Petrol (PMS), Diesel (AGO) and Kerosene (DPK) in Nairobi.

Following the increase in fuel levy to Sh18 from Sh12, taxes and levies per litre of petrol. Other levies include Sh19.89 for Excise Duty, Sh0.40 for Petroleum Development Levy and Sh0.12 for Petroleum Regulatory Levy.

The retail price for diesel has increased to Sh83.24 per litre, while a litre of super petrol is going for Sh92.93 in Nairobi. Kerosene increased by Sh3.41 to Sh61.45 in Nairobi.

“ERC has factored Sh6 per litre in additional Road Maintenance Levy for both super petrol and diesel in line with the Road Maintenance Levy Fund (Imposition of Levy) (Amendment) Order, 2016,” ERC said in a statement.

ERC said it also factored in the landed cost of imported super petrol which increased by 3.03 per cent from $ 490.18 (Sh49, 674.84) per tonne in May 2016 to $ 505.02 (Sh51,178.73 ).

READ: Tougher Days Ahead as Fuel Prices Increased

The following is a summary breakdown of fuel prices in Nairobi

Treasury Cabinet secretary Henry Rotich, in his 2016/2017 budget policy statement on June he stated that transport was a key service to all sectors of the economy, thus with the increasing expansion of road network in the country, there is in turn a corresponding increase in the cost of maintaining the roads. This led to a proposal to increase the Road Maintenance Levy from KSh 12 per litre to KSh 18 per litre so as to achieve the target of maintaining the expanded road network.

The transition period for the imposition of VAT on petroleum products which was to expire in September 2016 was extended by one year.

Here are the current proposed taxes and levies in Nairobi: