ERC revises fuel prices, to factor in VAT changes
The Energy Regulation Commission has revised Nairobi’s petrol prices downwards in its review for September 15 to October 14.
The price of a litre has dropped by Sh2.21 to Sh125.59.
In a statement on Friday, ERC Director General Robert Oimeke said the prices of diesel had increased by Sh0.39 while that of petrol had increased by Sh0.29.
“The prices are inclusive of Value Added Tax (VAT) at 16 per cent. The commission shall publish new prices whenever the rate of VAT is varied by law,” Mr Oimeke said.
Earlier today, President Uhuru Kenyatta proposed a decline of the fuel VAT rate to eight per cent, a change that would cause the price of petrol to drop to Sh118 and that of diesel to Sh107.
The changes will take effect if MPs accept his proposal, following his of Finance Bill, 2018.
In Nairobi, a litre of diesel will retail at Sh115.47 while that of kerosene will go for Sh97.70.
In Mombasa County, petrol, diesel and kerosene will be sold at Sh122.76. Sh112.65 and Sh94.90 respectively.
Motorists in Nakuru County will pay Sh126.12 for petrol, Sh116.23 for diesel and Sh98.51 for kerosene, while in Eldoret, Uasin Gishu County, they will part with Sh127.20, Sh117.30 and Sh99.58 respectively.
In Kisumu County, the same amount of petrol will cost drivers Sh127.19, diesel Sh117.29 and kerosene Sh99.58.
The ERC explained that the prices are a result of a decrease in the average landed cost of petrol by 2.33 per cent from $761.55 per ton in July to $743.85 in August.
The cost of diesel increased by 0.40 per cent from $683.25 to $685.95, while that of kerosene dropped by 0.60 per cent from $721.62 to $717.30 per ton.