New EPRA Fuel Prices of Super Petrol, Diesel and Kerosene

In a move that brings relief to motorists nationwide, the Energy and Petroleum Regulatory Authority (EPRA) has announced a significant reduction in fuel prices. This development follows closely on the heels of the budget statement presented by Treasury Cabinet Secretary Njuguna Ndung’u in Parliament.

New Fuel Prices

EPRA’s latest review, issued in a statement on Friday, reveals that the price of super petrol will decrease by Ksh.3 per litre, diesel by Ksh.6.08 per litre, and kerosene by Ksh.5.71 per litre. This adjustment is designed to alleviate the financial burden on consumers and is expected to have a positive impact on transportation and other sectors reliant on fuel.

The statement from EPRA emphasized that these prices include the 16% Value Added Tax (VAT) as stipulated by the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised excise duty rates adjusted for inflation according to Legal Notice No. 194 of 2020. This comprehensive pricing structure ensures transparency and compliance with current legislative frameworks.

Finance Bill Proposals

Despite this welcome reduction, there is a looming possibility of fuel price hikes in the near future. The current finance bill under parliamentary consideration proposes an increase in VAT on fuel, which could offset the recent decreases and lead to higher costs at the pump.

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Motor Vehicle Tax

Additionally, motorists may face further financial strain due to proposed changes in vehicle taxation. The Treasury CS has announced the removal of the Sh100,000 cap on motor vehicle tax, meaning owners of high-value cars will face steeper taxes. This measure, aimed at increasing government revenue, could result in substantial additional costs for vehicle owners when it comes into effect later this year.

These developments come at a critical time as the government balances efforts to stimulate economic growth with the need to increase fiscal revenues. The reduction in fuel prices is expected to provide short-term relief, but the potential future increases highlight the ongoing volatility in the sector.

Consumers and stakeholders are advised to stay informed about legislative changes and their implications on fuel prices and transportation costs. Further updates will be provided as the situation evolves and as the finance bill progresses through the legislative process.