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EPRA announces increase in petrol, diesel & kerosene prices

The prices of petrol, diesel & kerosene have shot up, even as President Ruto discloses plans to double fuel VAT during an interview with media

FILE PHOTO: A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas/File Photo

The Energy and Petroleum Regulatory Authority (EPRA) has announced an increase in the prices of petrol, diesel, and kerosene.

The new prices, which took effect on May 15, will be in force until the next review on June 14.

According to EPRA, a litre of petrol has increased by Sh3.40, diesel by Sh6.40, and kerosene by Sh15.19.

This means that a litre of petrol in Nairobi now costs Sh182.70, diesel Sh168.40, and kerosene Sh161.13.


The regulator also explained that the landed cost of petrol per litre was Sh101.83, Sh99.83 for diesel and Sh98.04 for kerosene.

The difference between the landed costs and retail prices was attributed to distribution and storage, profit margins and taxes and levies.

The prices are inclusive of the 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” the statement read in part.


The EPRA has attributed the increase to the rising cost of crude oil in the global market and the depreciation of the Kenyan shilling against the US dollar.

The mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.47% from Sh139.61 per US$ in March 2023 to Sh138.96 per US$ in April 2023,” EPRA explained.

President William Ruto announced that the government is planning on doubling the VAT charged on fuel from 8% to 16%.

During an interview with mainstream media houses at State House on Sunday, May 14, Ruto said that doubling the tax would help the government raise an extra Sh50 billion for development.


If I have to complete these roads, I need money. Everywhere I go, Kenyans tell me they need roads,” he spoke.

The president added that though the VAT of fuel would be doubled, he plans to scrap 3.5% road development levy and another 2% Import declaration fee (IDF) levy.


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