Kenyans’ life is about to get tougher after the Energy and Petroleum Regulatory Authority (EPRA) announced the increase of fuel prices.
Through a statement, a litre of unleaded (Petrol) fuel will retail at Sh179.30, with zero subsidy, representing a hike by Sh20.18.
On the other hand, diesel prices have increased by Sh25 and will now retail at Sh165 in Nairobi while Kerosene has increased by Sh20 meaning it will retail at Sh147.94 in Nairobi starting today.
“The prices are inclusive of 8 per cent Value Added Tax (VAT) in line with the provision 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,” read EPRA’s notice.
The new prices remain in force for the next one month.
This comes after President William Ruto removed fuel subsidies that have kept the price of petrol, diesel and kerosene the lowest in eastern Africa after taking oath of office.
“On fuel subsidy alone, taxpayers have spent a total of $1.2 billion [since 2020],” Ruto said during his inauguration before projecting that if it continues till June next year, it will cost Kenyans $2.4 billion.
To cushion manufacturers and processors against high production costs, the government has spent $74 million in fuel subsidies since April last year.
In July, the International Monetary Fund set a new condition for the government, requiring a removal of the fuel subsidy by October under a 38-month $2.34 billion loan.