Fuel, and electricity prices to rise on doubled Epra levy
Fuel and electricity costs are poised to experience another surge as a result of legislative amendments that would double a levy levied on the two commodities to fund the sector regulator’s operations.
By the Statute Law (Miscellaneous Amendments) Bill, 2023, the Energy Act of 2019 would be amended by doubling the Epra levy from its current maximum of 0.5 percent to 1 percent.
“Delete the phrase “half of a (percent)” appearing in paragraph (a) (of Section 20(1) of the Act),” says the Bill by the Leader of Majority in Parliament Kimani Ichung’wah.
As of now, petrol, diesel, and petrol per liter cost Kenyans Sh0.25 per liter in the form of a petroleum regulatory levy. Additionally, they are obligated to pay Sh0.08 per unit of electricity as Epra Levy.
These two levies serve as the foundation for the annual revenues of the regulator.
For the fiscal year ending in June 2021, Epra generated Sh1.2 billion from the petroleum levy, an increase of 16.5% from the previous year’s net of Sh1.1 billion.
During the same period, it generated Sh236 million in electricity levy revenue, a 10 percent decrease from the previous year’s figure of Sh263 million. Throughout that fiscal year, Epra generated a cumulative revenue of Sh1.51 billion; thus, the two levies, equivalent to Sh1.45 billion, comprised 96 percent of its total revenue.
“We did not receive any government support during the period,” said Epra.
Due to its reliance on levies, the energy regulator is typically severely impacted by a decline in petroleum and electricity demand, as this results in a direct reduction in revenue collection.
ALSO READ:
- Riggy G Rises from the Ashes! Gachagua Launches His Own Party, Blasts Liar Number One
- Mob Justice Token Thieves Busted and Beaten by Angry Residents in Kerugoya
- Mob Fury in Kirinyaga: Villagers Chase Nyumba Kumi Elders After Man Is Beaten to Death Over Grass Slasher
- High Court Orders Government to Appoint Nzau Musau and Lucy Minayo to Media Complaints Commission
- Kindiki Blasts Hired Goons as Chaos Erupts at Gachagua’s Party Launch in Lavington Shootout Drama
Approval of the proposal to double the levies would result in an additional escalation in petroleum and electricity costs, even though it would increase Epra’s operational capacity.
This occurs at a time when the government was compelled to stabilize fuel prices in response to public outrage over the exorbitant price of fuel, which was the subject of its most recent monthly review last week.
Consumers were marginally relieved that Epra reduced the price of diesel and kerosene by Sh2 per liter while leaving the price of petrol unchanged.
In light of the most recent assessment, the price of kerosene at the pump has increased by Sh57.12 per litre to Sh203.06, from Sh145.94 in November of the previous year.
Diesel has increased by Sh41.47 per liter to retail at Sh203.47, up from Sh162. In contrast, petrol prices have increased by Sh40.06 per liter to a record Sh217.36, up from Sh177.3 last year.
Following the April approval by the Authority of new tariffs that increased costs for certain consumer categories by as much as 63 percent, power prices have also remained elevated.
Fuel, and electricity prices to rise on doubled Epra levy
