Petroleum Outlets Association of Kenya (POAK) has called for urgent clarification from the Kenya Revenue Authority (KRA) regarding the implementation of the revised 8% Value Added Tax (VAT) on petroleum products.
POAK is calling EPRA and KRA to give a way forward on how VAT should be administered at the fueling stations.
“A lot of confusion on the implementation of the 8% VAT at the pump. Kindly, KRA, give a clear direction on how outlets implement this,” the statement read.
The association’s appeal comes at a time when the fuel sector is adjusting to pricing changes following government interventions aimed at stabilizing pump prices.
VAT Shift from 13% to 8% Triggers Price Recalculation
The government initially reduced VAT on petroleum products from 16% to 13%. Speaking during a public address in Kisii County, President Ruto declared that VAT on fuel would be lowered from 13% to 8% for three months to cushion Kenyans against high pump prices.
Also Read: EPRA Explains Why Private Companies Were Chosen for G-to-G Fuel Deal
According to EPRA reports, the reduction prompted a full recalculation of the maximum retail pump prices, which the regulator issues monthly.
The revised pricing structure took effect from April 16, 2026, to May 14, 2026, resulting in a downward adjustment in fuel prices across major towns in the country.
EPRA confirmed that petrol and diesel prices were reduced following the tax revision, with kerosene prices remaining unchanged due to subsidy structures.
“Pursuant to Legal Notice No. 70 dated April 15, 2026, the Cabinet Secretary for National Treasury has revised the Value Added Tax rate from 13% to 8%,” EPRA announced.
In Nairobi, Super Petrol, Diesel, and Kerosene now retail at Ksh197.60, Ksh196.63, and Ksh152.78. On the other hand, Super Petrol, Diesel, and Kerosene will retail at Ksh194.32, Ksh193.35, and Ksh149.49 in Mombasa.
Fuel Stations Face Implementation and System Challenges
Despite the official adjustments, fuel retailers say operational uncertainty remains, particularly regarding how VAT changes should be reflected in billing systems and compliance tools.
Stations are required to integrate updates into electronic tax invoicing systems while still adhering to EPRA’s controlled pricing framework.
Before governments intervention, the maximum allowed petroleum pump prices for Super Petrol and Diesel increased by KShs.28.69/litre and KShs.40.30/litre respectively while the price of Kerosene remain unchanged.
CS Wandayi Cautious on Fuel Prices
The price increase comes after Energy and Petroleum Cabinet Secretary Opiyo Wandayi declined to give a clear indication on whether Kenyans should expect a fuel price hike.
Appearing before the National Assembly’s Energy Committee, Wandayi noted that it would be premature to speculate on the outcome of the pricing decision, adding that the government could not pre-empt EPRA’s fuel prices announcement.
He added that fuel prices have risen globally, noting that while it remains unclear whether EPRA will increase local prices, the reality is that costs are already high.
Wandayi further stated that the cost of the latest fuel consignment would not be immediately factored into the pricing structure and urged the public to remain patient as they await the review.
Also Read: EPRA Lowers Petrol and Diesel Prices After VAT Cut to 8%
He also indicated that the government is expected to outline measures to cushion consumers from potential price shocks.
Uproar as National Oil Sell Petrol at Ksh 207 per litre
In a spot check by The Kenya Times, National Oil company is selling petrol at Ksh 207 and 208 Ksh for Diesel per litre.
Galana energy is also selling both petrol and diesel at Ksh 206 per Litre.
As a government parastatal, Kenyans have raised concerns why it is still selling fuel at the former price even after price was reduced.
Other fuel stations including Shell Energy, Rubis and Tosha Energy have reduced the prices following the governments directives.
