Kenyans are paying higher taxes on petroleum products compared to their peers, official data shows, pushing up pump prices of key products.
Data by the Energy and Petroleum Regulatory Authority (EPRA) shows taxes and levies on super petrol, as of July, totaled Sh58.01 per litre.
Ugandans paid Sh44.38 on the product while in Tanzania taxes levied on a litre of petrol totalled Shh41.73.
For diesel, taxes in Kenya totaled Sh45.75 with a litre attracting Sh34.58 in Uganda and Sh35.93 in Tanzania.
Kerosene which is used by poor households for lighting and cooking was taxed Sh40.32 in Kenya, Sh33.45 in Tanzania and a low of Sh9.18 in Uganda.
A litre of super petrol in Kenya is currently retailing at Sh127.14 in Nairobi, Sh115.28 in Dodoma(Tanzania) and Sh124.36 in Kampala, Uganda.
A litre of diesel is selling at Sh107.66 (Nairobi) and Sh106.39 in Dodoma. It is a bit higher at Sh Sh110.18 in Uganda.
Kenya however has the lowest pump prices on kerosene at Sh97.85 a litre in Nairobi compared to Sh101.99 in Dodoma and Sh104.06 in Kampala.
In Kenya, excise tax takes the lion's share of Sh21.95 of every litre of petrol followed by the Road Maintenance Levy (Sh18).
Value Added Tax has gone up from Sh8 to Sh9.42 while Petroleum Development levy is at Sh5.40.
Other levies included in the fuel pricing are Petroleum Regulatory Levy, Railway Development Levy, Anti-adulteration Levy, Merchant Shipping Levy and the Import Declaration Fee.
Last week, the Senate Energy Committee put to task officials in the Mining and Energy Ministry and the Energy and Petroleum Regulatory Authority (EPRA) to explain the high cost of fuel in the country, and provide a lasting solution.
“As you go on increasing taxes, do you have a solution to ensure that wananchi is cushioned against increase in prices,” committee chairman and Nyeri Senator ," Ephraim Maina posed.
According to EPRA, taxes and levies contribute the highest portion of the pump price of super petrol and is second greatest contributor to the price of diesel and kerosene.
“Import Declaration Fee, Railway Development Levy and Value Added Tax are charged as a percentage of the product cost resulting into a compounding effect when products cost increases,” EPRA Director General Daniel Kiptoo noted.
The government has from April this year used the Petroleum Development Levy to stabilise pump prices despite international crude oil prices going up.
“We have been able to hold the prices constant over the last two cycles,” Kiptoo said.
