William Ruto's Govt Raises Fuel Levy to KSh 25 Despite Lowering Petrol Prices by KSh 1

 

A motorist fueling his motorcycle at the petrol station.

Motorists in Kenya will have to part with an additional KSh 7 to purchase petroleum products, despite the government's move to reduce pump prices.  The Energy and Petroleum Regulatory Authority (EPRA) released a review of pump prices for July 2024, which saw super petrol, diesel and kerosene drop by KSh 1, KSh 1.5 and KSh 1.3, respectively. What's the new Road Maintenance Levy? The drop revised super petrol prices to KSh 188.84, diesel to KSh 171.60 and kerosene to KSh 161.75 in Nairobi. "The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," read EPRA statement in part.  However, EPRA did not spare motorists after revising the Road Maintenance Levy up by KSh 7. This means consumers of petrol and diesel will pay KSh 25 in tax for the Road Maintenance, up from the previous amount of KSh 18. EPRA dismisses Kenyans' views In July 2024, the Ministry of Roads and Transport proposed a review of the Road Maintenance Levy from KSh 18 to KSh 25. The Ministry invited Kenyans to submit their views on the proposals following participation in various parts of the country on Monday, July 8. Former Transport CS Kipchumba Murkomen noted that most Kenyans are worried that an increase in the levy will raise the cost of living. Murkomen assured that the government would consider the views and keep the Road Maintenance Levy at KSh 18. 

by  Wycliffe Musalia