The energy regulator on Saturday revised fuel prices to reflect the 16 per cent VAT as directed by Treasury CS Henry Rotich.
A litre of petrol in Nairobi will now retail at Sh127.80, diesel will go for Sh115.08 while kerosene will sell at Sh97.41 per litre.
This represents an increase of Sh14.07 on super petrol, Sh12.34 on diesel and Sh12.46 on kerosene.
Consumers in Mandera will pay the highest for fuel, with a litre of petrol now going for Sh141.61, diesel at Sh128.89 and Kerosene at Sh111.22.
The new prices will apply until September 14 at midnight.
Energy Regulatory Commission Director General Pavel Oimeke, however, said the recalculated pump prices will be revised if the amendments to the Finance Bill 2018 will be enacted.
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The amendments can only become effective once President Uhuru Kenyatta assents to them.
The amendment moved by Suna East MP Junet Mohammed deferred the application of the value added tax on petroleum products for two years until September 1, 2020.
He said this was meant to shield Kenyans from the cost of living including a hike in bus fare.
Rotich, however, on Friday directed that the new levy will become effective on Saturday in line with the Finance Bill, 2013.
He said this was primarily for purposes of improving efficiency in
tax collection.
"When these products become vatable, the input VAT that was previously non-recoverable will now be recoverable," Rotich said.
According to the revised fuel prices, motorists in Mombasa will pay Sh124.49 per litre of super petrol, Sh111.78 for diesel and Sh94.61 for kerosene.
In Nakuru, a litre of petrol will retail at Sh128.46, Sh115.97 for diesel and Sh98.22 for kerosene.
In Kisumu, the products will go for Sh129.71, Sh117.22 and Sh99.29 for petrol, diesel and kerosene respectively.
On Saturday, the Kenya Revenue Authority advised importers, depots, distributors and retailers to charge the new pump prices and submit returns by October 20.