Petrol prices drop by Ksh.9, Kerosene up Ksh.10 as new VAT takes effect
The Energy Regulatory Commission (ERC) has lowered the price of petrol following the enactment of the new petroleum Value Added Tax at 8 percent from the initial 16percent.
Petrol prices in Nairobi are now at Ksh.116 per litre while Diesel and Kerosene will retail at Ksh.108 per litre.
“Pursuant to the Finance Act 2018, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) has been revised from 16percent to 8percent,” read a statement from ERC’s Director General Pavel Robert Oimeke.
“Accordingly, ERC has recalculated the maximum pump prices that will be in force from 21st September to 14th October 2018 taking into account the VAT at 8percent.”
The biggest losers in the new rates are kerosene users who will have to folk out Ksh.10 more for a litre of the commodity. Kerosene and Diesel are now at par at the pump both retailing at Ksh.108.
“Further, the calculations have taken into account the adulteration levy of Ksh.18 per litre on kerosene in line with the Finance Act 2018.
“As a result, the pump prices per litre in Nairobi of Super Petrol and Diesel decrease by Ksh.8.80 and Ksh.7.35 respectively, while that of Kerosene increases by Ksh.10.71.”
Last week, ERC, in its monthly fuel prices review, dropped the price of super petrol by Ksh.2.21 while the prices of diesel and kerosene have gone up slightly by Ksh.0.39 and Ksh.0.29 per litre respectively.