PUMP PRICES

Fuel prices rise as taxes, levies, crude cost go up

Petrol will retail at Sh110.59 in Nairobi, diesel at Sh104.61 and kerosene at Sh104.06.

In Summary

•With these fees, this means for every Sh110.59 per litre paid by a consumer at the pump in Nairobi, Sh47.18 shilling will be going to the government as taxes and levies.

•The rise comes two months after the drone attack on Saudi Arabia's two major oil facilities that knocked out five per cent of the global oil production.

Fuel prices in the country have surged in the latest review pinned on higher taxes.

In the new review by Energy and Petroleum Regulatory Authority (EPRA), price for Super petrol, diesel and kerosene have increased by Sh2.54, Sh2.65 and Sh2.98 per litre respectively.

The review places November retail price for petrol at Sh110.59 in Nairobi, diesel at Sh104.61 and kerosene at Sh104.06.

 
 

The reviewed prices take into account a cumulative nine taxes and levies.

This are Excise Duty, Road Maintenance Levy, Petroleum Development Levy, Petroleum Regulatory Levy, Railway Development Levy, Merchant Shipping Levy, Import Declaration Fee and Value Added to all petrol and diesel imports. Kerosene attracts all these plus an  Anti-adulteration levy. 

Also pushing up the cost is the  provision for pipeline and depot losses.

The prices have factored in the revised Import Declaration Fee (IDF) of 3.5 per cent, from two per cent and Railway Development Levy (RDL) of two per cent in line with the Finance Act 2019.

The rate of RDL that was launched in 2013 has been increased from 1.5 per cent and applies on all imported finished goods to fund the construction and operations of the Standard Gauge Railway.

 

“The prices are also inclusive of 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018 and the revised rates for excise duty adjusted for inflation as of July 9, 2019,” EPRA said.

With these fees, this means for every Sh110.59 per litre paid by a consumer at the pump in Nairobi, Sh47.18  goes to the government as taxes and levies.

The pump prices on the petroleum products are set to take effect from today to December 14, 2019.

The rise comes two months after the drone attack on Saudi Arabia's two major oil facilities that knocked out five per cent of the global oil production.

Petroleum industry analysts predicted the impact would translate to higher costs in two to three months.

The country is still reeling from the attack which caused a momentarily spike in oil in global markets.

EPRA further attributed the the changes in the month's prices to the average landed cost of imported Super petrol which increased by 0.86 per cent from $459.27 per cubic metre in September to $463.24 in October.

Diesel increased by 2.08 per cent from $491.94 to $502.15, while kerosene increased by 2.73 per cent from $486.55 to $499.85 per cubic metre.