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The Energy and Petroleum Regulatory Authority (EPRA) on Monday, August 14 announced that pump prices will remain unchanged for the next thirty days.
“In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, the Energy & Petroleum Regulatory Authority has calculated the maximum retail prices of petroleum products which will be in force from 15th August 2023 to 14th September 2023.
In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene remain unchanged.
The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” the statement read in part.
EPRA July-August Prices
On July 14, the regulator announced fuel prices for the period running through to August 14.
In the announcement it stated that a litre of petrol would retail Ksh.194.68, diesel would cost Ksh.179.67 while kerosene retailed at Ksh.169.48.
The review of prices came in the wake of the High Court ruling that suspended the implementation of the Finance Act, 2023.
As such, the court ruling stopped the agency from doubling Value Added Tax on fuel from 8% to 16%.
However, in review, the authority announced the increase of fuel prices to Ksh195.53 and Ksh179.67 per litre of super and diesel respectively in Nairobi from July 1.
Fuel Subsidy
According to EPRA, the government had subsidized the fuel prices to shield Kenyans from the skyrocketing costs.
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilize pump prices for the August- September 2023 pricing cycle.
Oil Marketing Companies (OMCs) will be compensated from the Petroleum Development Fund (PDF),” stated EPRA.
Also Read: EPRA Deactivates MPESA Account, Gives Alternative
DG Daniel Kiptoo Summoned
On August 7, the High Court summoned EPRA Director General Daniel Kiptoo to justify why he should not be charged with contempt for disobeying the order on the Finance Act 2023.
According to the petitioner, Busia Senator Okiya Omtatah, Kiptoo went on to increase petroleum prices by 8 percent when the court had issued an order on July 10 suspending the implementation of the Act.
EPRA increased fuel prices upwards despite a case filed by Senator Omtatah leading to issuance of temporary court orders.
Also Read: EPRA to Announce Reviewed Fuel Prices
Additionally, the increase came after the High Court stopped the Finance Act 2023 from taking effect from July 1 following the petition filed by Senator Omtatah.
The law entailed the rise of the Value Added Tax (VAT) on fuel from 8% to 16%.
However, EPRA revised fuel prices on June 30, which saw an increase in prices, where a litre of petrol, diesel, and kerosene retail at Ksh.195.50, Ksh.179.60 and Ksh.173.44, respectively.
Court of Appeal
The Court of Appeal on Friday, July 28 lifted the order suspending the implementation of Finance Act 2023 until the appeal is heard and determined.
Consequently, this now allows the regulator to implement the Finance Act by increasing the VAT from 8% to 16%.
The Finance Act that seeks increase revenue collection to fund President William Ruto’s Ksh3.6 trillion budget.
