Motorists will pay more at the pump once the Energy and Petroleum Regulatory Authority (EPRA) raises fuel prices on September 15, 2022.
Super Petrol will cost Ksh 179.30, up from Ksh 159, Diesel Ksh 185.82, up from Ksh 165, and Kerosene Ksh 174.19, up from Ksh 147.94.
Prices increased by 20.18 per litre, 25.00 per litre, and 20.00 per litre, respectively.
According to EPRA, despite the removal of the super fuel subsidy, a subsidy of Ksh 20.82 per litre and Ksh 26.25 per litre is still available.
litre has been retained for Diesel and Kerosene respectively in order to cushion consumers from the otherwise high prices.
“The Government will utilise monies collected on account of the Petroleum Development Levy to compensate Oil Marketing Companies (OMCs) for the difference in cost.” Said EPRA.
EPRA noted that the prices are inclusive of the 8pc 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.
This comes a day after President William Ruto said he will scrap fuel subsidies noting that the country would spend Ksh 200 Billion if it was to continue implementing the fuel subsidy.
In his inaugural speech Tuesday after he was sworn in as the 5th president of Kenya, Ruto said Ksh 144 billion has so far been spent on the program to stabilise fuel prices in the past year adding that Ksh 60 Billion has been spent on the last four reviews alone.
Retired President Uhuru Kenyatta initiated the fuel subsidy in a move to reduce the cost of fuel by approximately 13pc.
Delay in paying the subsidy has resulted in fuel shortages occasioned sometimes by hoarding. Ruto cautioned that if the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh 280 billion. This will be equivalent to the national government development budget.