Kenyans Paying More For Fuel Than What The Finance Act Stipulates

The Energy Petroleum and Regulatory Authority (EPRA) ignored a court order that had suspended the implementation of the controversial Finance Act. In a rush, they went ahead and announced the new fuel prices, increasing the VAT from 8 percent to 16 percent.

But in the rush to impress the proponents of the Finance Act, and in the rush to make sure that the 16 percent VAT is effected, EPRA ignored some provisions in the Finance Act that are now costing Kenyans, making them overpay for the fuel.

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The Finance Act effected changes to two levies on Fuel that will see Kenyans still paying higher but not what EPRA loudly announced. This means that Kenyans are paying cash for fuel that shouldn’t be and should be refunded, again something that will never happen.

The Finance Act of 2023 amended the Miscellaneous Fees and Levies Act of 2016 to reduce IDF from 3.5 percent to 2.5 percent and RDL from 2.0 percent to 1.5 percent in what was tailored towards cushioning Kenyans from the anticipated fuel price spike following the doubling of Value Added Tax (VAT).

Fuel prices jumped on the night of July 1 from midnight with petrol increasing by 13.49 shillings per liter, diesel by 12.3 shillings, and kerosene by 11.96 shillings.

In Nairobi, a liter of super petrol is retailing at 195.53 shillings while that of diesel jumped to 179.67 shillings. The new prices are the highest in many years.

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Currently, fuel prices are the highest in Mandera where a liter of super petrol, diesel, and kerosene is fetching 209.53, 193.67, and 187.44 shillings respectively.

Prices are the currently lowest in Mombasa due to the proximity to the entry point. A liter of super petrol, diesel, and kerosene is going for 192.48, 176.63, and 170.40 shillings respectively.

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