Small relief at the pump as new VAT rate pushes fuel prices down

Date:

Motorists across Kenya are set to get a small but noticeable relief at fuel stations after the Energy and Petroleum Regulatory Authority (EPRA) announced a reduction in fuel prices.

The adjustment follows a decision by the National Treasury to lower Value Added Tax on petroleum products from 13 per cent to 8 per cent.In an addendum to its earlier review released on April 14, EPRA said the new prices are based on a legal notice issued on April 15, 2026.

The revised rates will take effect from April 16 to May 14, replacing the prices that had been announced earlier in the month.

According to Acting EPRA Director General Dr. Joseph Oketch, the price of Super Petrol in Nairobi will drop by Ksh.9.37 per litre, while Diesel will decrease by Ksh.10.21. The price of Kerosene, however, will remain unchanged.

This means motorists will now pay Ksh.197.60 for Super Petrol and Ksh.196.63 for Diesel, while Kerosene will continue retailing at Ksh.152.78 per litre in Nairobi.

In Mombasa, the new prices reflect a similar trend, with Super Petrol retailing at Ksh.194.32, Diesel at Ksh.193.35 and Kerosene at Ksh.149.49 per litre.

EPRA also noted that the subsidy on Kerosene has been reduced from Ksh.108.10 to Ksh.96.56 per litre, even though the pump price remains unchanged.

The latest adjustment comes shortly after EPRA had announced a sharp increase in fuel prices for the April to May cycle. In that earlier review, Super Petrol and Diesel prices had risen significantly, driven by higher global oil prices and exchange rate pressures.

EPRA explained that the increases were caused by rising landed costs, which reflect the price of fuel imports.

A weakening Kenyan shilling and instability in international markets also contributed to the higher prices, despite earlier government efforts to cushion consumers.

The recent VAT cut to 8 per cent signals a stronger response from the government as concerns over the cost of living continue to grow.

President William Ruto announced the tax reduction as a temporary measure that will run for three months.

He also confirmed that the government has released Ksh.6.2 billion to help stabilize fuel prices and maintain the cost of Kerosene, offering some support to households that rely on it for daily use.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Murkomen midnight denial fails to settle Ksh20 Billion Runda land dispute

Interior Cabinet Secretary Kipchumba Murkomen has come out strongly...

Murkomen, Sudi and Kururia named in court petition over disputed Runda land worth Sh20 billion

A court petition has drawn Interior Cabinet Secretary Kipchumba...

Court to decide fate of Nigerian suspect accused of drug trafficking in Mombasa

A court in Mombasa has heard a case involving...

FKF faces questions after awarding Ksh 42 million CHAN insurance deal to new firm

Fresh scrutiny has been directed at Football Kenya Federation...

You cannot copy content of this page