By Alex Simiyu
The government will draw from the Petroleum Development Levy to soften the impact of rising fuel prices after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in pump prices effective Tuesday midnight.
EPRA said diesel will rise by Ksh40.30 per litre while super petrol will increase by Ksh28.69 per litre for the pricing period running from April 15 to May 14. Kerosene prices remain unchanged.
In Nairobi, super petrol will now retail at Ksh206.97, diesel at Ksh206.84 and kerosene at Ksh152.78, reflecting the latest adjustments driven by higher global oil prices and tax revisions.
To cushion consumers, the government has reduced Value Added Tax on petroleum products from 16% to 13%, citing recent legislative changes under the VAT Act, the Finance Act 2023 and the Tax Laws (Amendment) Act 2024.
EPRA also confirmed that approximately Ksh6.2 billion from the Petroleum Development Levy Fund will be used to stabilize pump prices and reduce the immediate burden on motorists and households.
The regulator attributed the sharp increase to a surge in global landed costs over the past month. It also clarified that a recent Super Petrol shipment by One Petroleum was excluded from the pricing computation as per government directive.
The new prices are expected to significantly raise transport and commodity costs, adding pressure on consumers already facing high living expenses.
