Bumpy ride for Kenyans as state triples petroleum regulatory levy

Kenyans are in for fresh pain as the government triples the tax payable to Energy and Petroleum Regulatory Authority (EPRA) for every litre of the commodity purchased. The levy has been raised to KES 0.75 per litre up from KES 0.25.

According to a statement released by the regulator barely a week ago, the new prices for Super Petrol, Diesel, and Kerosene decreased to KES 206.36, KES 195.47, and KES 193.23, respectively, but the increased levy could cancel out the gains.

The levy is one of nine taxes that determine the price of fuel at the pump and has been increased to fund the operations of the energy regulator. The others are excise duty, Road Maintenance Levy, Petroleum Development Levy, Railway Development Levy, Anti-Adulteration Levy, Merchant Shipping Levy, Import Declaration Fee and Value Added Tax (VAT).

For the first time in six years, Energy CS Davis Chirchir has reviewed the levy and introduced new regulations to enforce the changes. Consequently, consumers may face additional price hikes, especially if the Kenya Roads Board’s proposals to raise the Road Maintenance Fuel Levy (RMFL) by KES 5 per litre are approved.

This increase is prompted by the rising costs of road maintenance, including higher fuel prices and increased expenses for road construction materials like tar and bitumen.

Such adjustments are expected to impact the costs of periodic road maintenance undertaken by road agencies in the current fiscal year, starting from July 1, 2023.