EPRA to Reveal New Fuel Prices on June 30 after Finance Act 2023
The Energy and Petroleum Regulatory Authority (EPRA) will announce new fuel prices on Friday, June 30, by the Finance Act of 2023.
In a statement released on Thursday, June 29, EPRA cited the doubling of the Value-Added-Tax (VAT) on fuel from 8% to 16% as the reason for the adjustment.
The eight percent additional VAT on the products is anticipated to have a significant impact on the price per liter of fuel, national revenue, and the price of essential household goods.
Wednesday, June 14, EPRA will announce new prices less than two weeks after lowering fuel prices.
The fuel’s value-added tax is projected to increase the existing price of gasoline in price ratio settings by 8%, or Ksh14.59.
In Nairobi, gasoline is expected to cost Ksh196.9 per liter, up from the current price of Ksh182.4 per liter. In Nairobi, diesel prices are expected to rise from Ksh167.28 to an average of Ksh180.6624 per liter.
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The average price of kerosene will increase to Ksh174.39 from the current Ksh161.48.
According to President William Ruto, the 16 percent increase will make fuel prices more competitive, thereby attracting foreign investors.
While introducing the bill in the House of Representatives, the National Assembly’s Committee on Finance and Planning stated that the advantages of increasing the VAT tax outweighed its disadvantages.
Kuria Kimani, chair of the Finance Committee, emphasized the need to standardize the value-added tax because the 8% rate had complicated matters for both oil marketing companies and the government.
In addition, he stated that the shift was necessitated by an international commitment to transition to the use of clean energy.
“There is a global discussion about climate change and becoming environmentally conscious. Kimani stated on June 21, 2023, that many nations are transitioning away from the consumption of fossil fuels to the consumption of clean energy.
EPRA to Reveal New Fuel Prices on June 30 after Finance Act 2023
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