Petrol price down by Sh2 per litre, diesel rises in latest ERC review
1 weeks ago, 18:45
The cost of petrol has reduced by Sh2.21 while diesel and Kerosene increased by Sh0.39 and Sh0.29 respectively in latest ERC pump price review.
The Energy Regulator Commission said the changes have taken into account the weighted average cost of imported refined petroleum products.
The new maximum retail pump prices of petroleum products will be in force from September 15 to October 14.
Director General Pavel Oimeke said the prices are inclusive of the Value Added Tax at 16 per cent in line with the provisions of the VAT Act 2013.
The commission said it shall publish new prices whenever the rate of VAT is varied by the law.
"The changes in this month's prices has been as a consequence of the average landed cost imported Super Petrol decreasing by 2.33 per cent," the regulator said in a statement.
Oimeke said the commission will continue to observe fair competition and protect the interests of both consumers and investors in the energy sector.
"The purpose of the fuel pricing is to cap the pump prices of the products which are already in the country, so that the importation and other prudently incurred costs are recovered, while ensuring reasonable prices to consumers," he said.
The review came hours after President Uhuru Kenyatta asked MPs to approve a cut on fuel VAT from 16 to eight per cent.
This followed his reservations with the Finance Bill, 2018 which would slashed VAT on fuel products until 2020.
"Should parliament accept this proposal, petrol price will drop from Sh127 to Sh118 while diesel will drop from Sh115 to Sh107," the president said.
MPs will now have to raise a two-thirds majority if they are to overturn Uhuru's proposal which waters down their proposal to shelve the VAT.
Addressing the nation on Friday, Uhuru said business owners should also reduce the cost of goods.
"I expect them not to take advantage of Kenyans and to lower their prices without any delays," he said.
Uhuru said Kenya still faces funding gaps adding that this measure will not balance Kenya's budget as required.
"I have proposed cuts in spending across arms of government on hospitality, foreign travels, seminars and other similar categories," he said.
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