EconomyRelief as EPRA Cuts Fuel Prices Following a Release of Kes 24 Billion From National Treasury

The Energy and Petroleum Regulatory Authority (EPRA) cut fuel prices by Kes 5 per litre, bringing down the cost of super petrol and diesel toKes 129.72 and Kes 110.60 respectively in the latest monthly review ending on November 14. 

This follows a release of Kes 24 billion from the National Treasury to the  Petroleum Development Fund to bring down fuel prices in the latest review.

“The government will utilise the Petroleum Development Levy to cushion consumers from the otherwise high prices,” EPRA director-general Kiptoo Bargoria said in a statement on Thursday afternoon.

In a bill presented to the National Assembly, fuel is set to be exempted from the annual review of inflation tax while two levies charged on diesel and petrol will fall by half if Parliament adopts proposed changes to the law aimed at lowering pump prices.

The National Assembly Committee on Finance and National Planning say fuel should be exempted from the annual adjustment and Value Added Tax (VAT) on petroleum products reduced from eight to four per cent.

The proposals contained in the Petroleum Products’ (Taxes and Levies) (Amendment) Bill, 2021 will also slash the levy that motorists pay to support a fuel subsidy scheme from Sh5.40 per litre to Sh2.90.

The Bill set to be tabled in Parliament seeks to reduce the price of diesel, petrol and kerosene amid public uproar after pump prices hit historic highs in the last monthly review ending tonight. However, both EPRA and Petroleum CS John Munyes accused the treasury of delays in releasing the Petroleum Development Fund, a move that saw a litre of petrol, diesel and kerosene increase by Kes 7.58, Kes 7.94 and Kes 12.97, respectively.

“Out of the Kes 32 billion from the Petroleum Development Fund, we spent Kes 8.6 billion in the five months to stabilise fuel prices. We did not receive any money in September,” Petroleum CS John Munyes told the Senate Energy Committee.

The new prices will see motorists in Mombasa pay Kes 127.46 per litre of petrol, Kes 108.36 for diesel and Kes 101.29  for Kerosene while those in Kisumu will pay Kes 130.12, Kes 111.3 and Kes 104.26 for petrol, diesel and kerosene respectively.

Nakuru motorists will part with Kes 129.24 for petrol, Kes 110.43 for diesel and Kes 103.39 for kerosene, while those in Eldoret will pay Kes 130.13, Kes 111.32 and Kes 104.27 for the three products respectively.

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