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EPRA prepares Kenyans for hike in fuel prices

The Energy and Petroleum Regulatory Authority has prepared Kenyans for changes in fuel prices.

A pump attendant fills a car with fuel at the OlA petrol station, following country wide price hikes on March 15, 2022, in Nairobi. (Photo by SIMON MAINA/AFP via Getty Images)

This follows the implementation of the 16% VAT on fuel after President William Ruto signed the Finance Bill 2023 into law.

In a statement, on June 29, EPRA said it would announce the new fuel prices on June 30 as the government starts the FY 2023/24.

The inclusion of a VAT on petroleum products is expected to have far-reaching consequences for Kenyans.

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The new VAT rate on fuel will inevitably lead to an increase in pump prices.

Fuel, being a vital commodity for transportation, manufacturing, and other industries, plays a crucial role in the economy.

As the cost of fuel rises, it will have a ripple effect on transportation costs, affecting commuters, businesses, and the overall cost of goods and services.

The transportation sector, including public transportation and logistics companies, will face the immediate brunt of the fuel price hike.

With higher fuel expenses, transport operators may be forced to increase fares to maintain profitability.

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This, in turn, can result in an added financial burden on commuters who rely on public transport for their daily commute.

Manufacturers will also feel the impact of the increased VAT on petroleum products.

The rise in fuel prices will lead to higher operational costs, as transportation expenses for raw materials and finished goods will increase.

This additional expenditure may translate into higher prices for consumer goods, affecting the average citizen's purchasing power.

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