Epra defies court order, increases fuel prices
Just a few minutes after the High Court suspended the implementation of Finance Act 2023 that proposed the doubling of petroleum prices, the Energy and Petroleum Regulatory Authority (Epra) announced the new fuel prices.
While suspending the Finance Act, Justice Mugure Thande said the matter is to be mentioned on July 5, 2023. This means that the new Epra prices are not to take effect until the matter is mentioned in the High Court.
However, in the new Epra review, Super Petrol rose by Sh13.49 per litre, Diesel by Sh12.39 per litre, and Kerosene by Sh11.96 per litre.
Also read: New fuel prices to kick in on Friday as 16% VAT takes effect
“Pursuant to the Finance Act, 2023, VAT on Super Petrol, Diesel and Kerosene has been revised from 8% to 16% effective 1st July 2023. Accordingly, Epra has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023 taking into account VAT at 16%,” EPRA said in a statement.
“As a result, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Sh13.49, Sh12.39 and Sh11.96 per litre respectively,” the statement added.
Also read: Fare, electricity prices to go up as Parliament increase VAT on fuel
According to the Epra new review, petrol, diesel and kerosene prices in Nairobi will retail at Sh195.53 up from Sh182.04, Sh179.67 up from Sh167.28 and Sh173.44 up from Sh161.48 per litre respectively.
Among the most important proposals approved in the Finance Act 2023/2024 is the contentious Housing Levy, which had initially been proposed to be at 3 per cent was also passed after it was amended to 1.5 per cent of gross pay. It had been converted into a tax.
The initial proposal called for the levy to be a savings account that Kenyans could access after seven years. The Act also proposed that Digital creators will be subject to a 5 per cent tax. This figure was originally proposed to be 15 per cent. Betting and insurance withholding taxes will be charged at 12.5 per cent and 16 per cent respectively.
Also read: Relief for motorists as fuel prices drop, kerosene goes up