Fuel prices to remain unchanged this January, EPRA
Fuel prices in Kenya will remain unchanged, the Energy and Petroleum Regulatory Authority (EPRA) has announced. In a statement, the authority said that Super Petrol will continue to retail at KES 177 per litre, Diesel at KES 162, and Kerosene at KES 145.9 per litre, the same prices as in December 2022.
EPRA added that the Diesel price had been cross-subsidised with that of Super Petrol to cushion consumers from the skyrocketing prices.
“The prices are inclusive of the 8 percent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” EPRA announced.
Additionally, a subsidy of KES 25.13 per litre was been maintained for Kerosene in order to cushion consumers from the otherwise high prices.
“The Government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost,” EPRA added.
“EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors,” the authority concluded.
The government in the past months has been on the receiving end of complaints about the increasing cost of household commodities, especially fuel.
During the inauguration ceremony in September 2022, President William Ruto vowed to remove subsidies that have proved ineffective and costly to taxpayers.
“In addition to being very costly, consumption subsidy interventions are prone to manipulation and create uncertainty including artificial shortage,” Ruto announced.
He argued that if the fuel subsidy continued to the end of the financial year, it would cost taxpayers KES 280 billion equivalent to the entire national government development budget.
Despite this, the government has chosen to maintain the current fuel prices for January 2023, a move that will come as a relief to many citizens who have been struggling to cope with the rising cost of living.
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