NEWS

Reasons behind high petrol price in Kenya

Top among the reasons for the July-August 2019 petrol hike is the high landing cost and taxing of super petrol.

A breakdown of how the Energy and Petroleum Regulatory Authority (EPRA) settled on the pricing of Super Petrol in Nairobi proves it.

The cost of importing 1 litre of super petrol in Nairobi is currently at Sh54.19.

The new fuel prices breakdown.
| Photo Source: EPRA |

Before super petrol gets to Nairobi, it will be taxed for Excise Duty (Sh20.92) and Road Maintenance Levy of Sh18.00 per litre. Super petrol will also be taxed for Petroleum Development Levy (Sh0.40) and Petroleum Regulatory Levy (Sh0.25).

Other taxes that super petrol in Nairobi will undergo include: Railway Development Levy (Sh0.77), Merchant Shipping Levy (Sh0.02), Import Declaration Fee (Sh1.03) and Value Added Tax (Sh5.44 ). In total, all the taxes total to Sh46.83 per litre.

The new fuel prices breakdown.
| Photo Source: EPRA |

Therefore, when you add the cost of importing petrol and the taxes, the total comes to Sh101.02.

According to a statement release by EPRA, starting July 15th to August 14th 2019, super petrol prices will rise by Sh0.29. However, Diesel and Kerosene prices will decrease by Sh0.88 and Sh2.31 respectively.

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