Petrol price to hit Sh130 as VAT charge kicks in - 7 months ago, 10 Aug 06:58
Nairobi motorists will pay a record Sh130.15 per litre of petrol or about Sh17.9 more beginning next month when petroleum products start attracting 16 per cent value added tax (VAT).
Treasury principal secretary Kamau Thugge yesterday confirmed that petroleum products will start attracting the tax on September 1 in line with Kenya’s promise to the International Monetary Fund (IMF) two years ago.
At prevailing prices diesel, used to power commercial vehicles such as buses and tractors, will cost Sh16.5 more to stand at Sh119.77 a litre after adding the tax.
The new tax burden will also be felt among consumers of Kerosene, who are mostly low-income households that use it for lighting and powering cooking stoves. A litre of kerosene will cost Sh99.44, a Sh13.7 increase from current price of Sh85 per litre.
The increase in prices at the pump will not be limited to Nairobi but will be felt countrywide beginning September 1.
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