Energy and Petroleum Regulatory Authority (EPRA) has increased the Road Maintenance Levy by KES 7 per litre, offsetting the rise against a marginal decrease in fuel prices.
The decision, which takes effect from 15th July 2024, comes after extensive public consultations and aims to address the country’s pressing road infrastructure requirements without exacerbating the cost of living crisis.
The levy increase, pushing the total from KES 18 to KES 25 per litre, was announced alongside EPRA’s monthly fuel price review. Despite initial concerns about potential price hikes, the regulatory body has managed to slightly reduce pump prices, with Super Petrol, Diesel, and Kerosene seeing decreases of KES 1.00, KES 1.50, and KES 1.30 per litre respectively in Nairobi.
“Given the current economic situation, it is recommended that the levy be reviewed as proposed by matching the increase of the road maintenance levy with the reduction of prices of fuel,” stated the public participation report dated 8th July 2024. This approach appears to have been adopted by EPRA in its latest price adjustment.
The new prices, effective until 14th August 2024, will see Super Petrol retail at KES 188.84, Diesel at KES 171.60, and Kerosene at KES 161.75 per litre in the capital. These figures include the 16% Value Added Tax (VAT) in line with recent legislative changes and inflation-adjusted excise duty rates.
Former Transport Cabinet Secretary Kipchumba Murkomen had previously indicated a willingness to reconsider the levy increase following public feedback.
“The Ministry was tasked to execute measures to increase the levy without increasing the cost of fuel beyond the current prices,” the public participation report noted, highlighting the delicate balance officials sought to strike.
The decision to raise the Road Maintenance Levy while simultaneously reducing fuel prices represents a nuanced approach to Kenya’s infrastructure funding challenges.
