Three days after the implementation of the 16 percent Value Added Tax on petroleum products, Kenyans are in for even tougher times ahead occasioned by fuel shortage.
Petroleum distributors went on strike on Monday in an effort to compel the government to suspend the implementation of the VAT on fuel that has led to the hiking of prices.
The distributors say that the new tax makes it difficult for them to sell the product and most of them ended up in losses in the first day of implementation.
They say that the current wholesale price of fuel in Kenya is lower than the retail price in Uganda something that might lead to losses amounting to millions per tank.
More than 200 tanker owners have been camping at Kenya Pipeline depots, blocking any tanker from accessing the fuel.
A check on most petrol stations across the country showed that most of them will run out of fuel by Wednesday morning if the standoff will not have been addressed.
Some fuel sellers from Uganda have already cancelled their orders in Kenya saying they would not risk to buy the fuel at such a hiked cost as they risked getting into huge losses given the lower prices in Uganda.
With the new VAT, a liter of super petrol has gone up by between 11 shillings and 13 shillings from 114.90 shillings for super petrol and 103.90 shillings for diesel.
Kenyans living at the boarders of Kenya-Uganda and Kenya-Tanzania have opted to buying fuel from this countries with petrol stations in Kenya’s side being left without customers.
In Uganda, a liter of super petrol is retailing at 108 shillings compared to between 127 and 130 shillings in Kenya while that of diesel is retailing at between 90 and 98 shillings compared to the price in Kenya.
In Tanzania, a liter of super petrol is going for 109 shillings compared to between 127 and 130 shillings in Kenya.