Motorists flock petrol stations as prices remain unchanged

Motorists flock petrol stations as prices remain unchanged

- in Business, News

Motorists in Nairobi flocked petrol stations Saturday to purchase fuel, ostensibly to beat the 16 per cent VAT which came to effect on September 1.

The National Treasury issued a statement on Friday insisting that VAT on petroleum products will be imposed, raising a litre of petrol in the city to Sh125.

This was despite intervention by Parliament in an amendment to the law on VAT exemption on petroleum products. It extended the tax regime by another two years.

However, a spot check by the Star in Nairobi revealed that most petrol stations were still charging Sh113.73 for a litre of petrol.

Diesel still traded at Sh102.74 per litre while Kerosene at Sh84.95 as directed by Energy Regulatory Commission (ERC) in August review.

Pump attendants who spoke to the Star said they will implement the new charges within the week, unless otherwise, as soon as they get a nod.

“We are still charging normal rates. Many motorists fuelled last night. Our petrol stock is fast running out,” an attendant at Shell Limuru Road said.

“Yesterday night was crazy here. People bought petrol and diesel in huge volumes. We got less to take us through the day though,” Peter Muli of a station along Peponi Road said.

KRA has maintained that the prices, emanating from the Finance Bill, 2013, will have to be implemented as directed by the National Treasury.

Read: KRA maintains 16% VAT on fuel in effect, asks dealers to file returns

Motorists took to Twitter to tell stories of their night fuel rush, most of them admitting that they filled tanks to avoid the imminent surge in prices.

@Maundu3 said he bought enough to last him a week as he waits for the president to sign to amendments effected by MPs.

ERC director general Pavel Oimeke was yet to answer to Star queries on the same by the time of going to press.

A communication officer at his office, however, said they are yet to issue any directive adding that they were yet to receive any complaint on the new prices.

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