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Why EPRA Kept Fuel Prices Unchanged

The news left many relieved as it had been widely feared that fuel costs in the country could rise to their highest ever historical levels

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Prices of Petrol, Diesel and Kerosene are set to remain unchanged for the next month, after the Energy and Petroleum Authority (EPRA) on Wednesday, July 15 announced maximum retail prices for the period July 15 – August 14, 2021.

In Nairobi, a litre of petrol will retail at Ksh127.14 while diesel will cost Ksh107.66. A litre of Kerosene will retail for Ksh97.85. In Mombasa, petrol will cost Ksh124.72 per litre, with Diesel going for Ksh105.27 a litre and Kerosene for Ksh95.46 a litre.

The prices are inclusive of the 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation.

The news left many relieved as it had been widely feared that fuel costs in the country could rise to their highest ever historical levels, due to the rise in global crude prices.

“The average landed cost of imported super petrol increased by 4.83 percent from $496.10 per cubic metre in May 2021 to $520.05 per cubic metre in June 2021; Diesel increased by 3.69 per cent from $461.95 per cubic metre to $479.01 per cubic metre. In the period under review, no kerosene vessel was discharged at the Port of Mombasa,” EPRA observed.

READ>>>>>KenGen To Benefit From Climate Action Carbon Credits

The increase in crude prices globally has been seen as an indicator for higher demand as economies recover from the shocks of the Covid-19 pandemic.

However, EPRA is banking on the State subsidy introduced in April to keep prices within reach for Kenyans who remain wary of the knock-on effect higher fuel prices would have on the cost of living.

The subsidy has been supported by the slashing of oil marketers’ margins, which have been regulated by the State since 2010 and has seen the dealers compensated to the tune of Ksh2 billion.

It has also been fueled by the Petroleum Development Levy, charged to fuel consumers. The levy was increased by a whooping 1,250% in July 2020, from Ksh0.40 a litre to Ksh5.40 a litre.

The state has collected about Ksh15 billion from the levy since July last year.

READ>>>>>Petrol Price Raised by Ksh8 as Kenyans Brace for Tough Times

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MARTIN SIELE
MARTIN SIELEhttps://loud.co.ke/
Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke
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