Petrol Price Drops 2.21 Shillings as Diesel and Kerosene Increases

The Energy Regulatory Commission (ERC) on Friday announced new fuel prices following a review that saw the price of petrol drop 2.21 shillings per liter.

Motorists will now feel a little better but not entirely since the cut is still negligible. Whereas the price of petrol dropped, diesel and kerosene went up slightly by 0.39 and 0.29 shillings per liter respectively.

In Nairobi, motorists will now purchase petrol at 125.59 shillings per liter and diesel at 115.47 shillings a liter whereas kerosene will be available at 97.70 shillings a liter.

The prices are still subject to the 16 percent value-added tax (VAT) imposed on fuel but will possibly be revised.

In the price revision notice, ERC director-general Pavel Oimeke said that the prices are inclusive of the VAT in line with the provisions of the VAT Act 2013.

“Nevertheless, should the law vary the rate of the VAT, the commission shall publish new prices,” he said.

The commission normally provides monthly revisions taking into account the weighted average of refined petroleum products. In August, petrol prices dropped by 2.33 percent and diesel rose by 0.40 percent, hence the new fuel prices.

President Uhuru Kenyatta on Friday proposed that the tax be halved to 8 percent but the parliament will resume next week to discuss the proposal by the president to cut the tax by 50 percent.

According to the president, should the Parliament approve the proposal, super petrol will drop from 127 shillings a liter to approximately 118 shillings a liter. The price of diesel will also fall from 115 shillings to 107 shillings a liter.

He further stated that the same way business people jumped on the new VAT train to increase prices of goods and services, they should also lower the costs with immediate effect when the proposal has been approved.

The new changes may come as a relief to others but the President refusing to sign the Finance Bill 2018 elicited negative reactions across the country.

Pamela Odhiambo, Migori Woman Representative voiced the sentiments of people from her region and Kisumu by urging the parliament to rise to the occasion and hear the cries of the common people.

Here is a table showing the new fuel prices as announced by ERC.