EPRA defies court order, increases fuel prices

As of the start of the 16% VAT, fuel prices have been raised by the Energy and Petroleum Regulatory Authority (EPRA).

Petrol prices in Nairobi would rise by 13.49 Sh, diesel by 12.39 Sh, and kerosene by 11.96 Sh, according to EPRA.

This implies that, with the exception of Mombasa, the rest of the country will likely pay more.

“Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) has been revised from 8% to 16% effective 1 July 2023,” the statement read.

“EPRA has recalculated the maximum pump prices that will be in force from 1″ July to 14th July 2023 taking into account VAT at 16 per cent.”

In Mombasa super petrol will be Sh192.48, diesel Sh176.63 and Kerosene Sh170.4.

In Kisumu, the price of super Petrol will retail at Sh195.34, diesel at Sh179.89 and Kerosene at Sh173.68.

In Nakuru super petrol will retail at Sh194.60, diesel at Sh179.14 and kerosene at 172.93. In Eldoret, super petrol will retail at 195.36, diesel at Sh179.69 and kerosene at Sh173.69.

Previously, Petroleum products were subjected to 8 per cent VAT.

This comes about two weeks after EPRA announced new fuel prices for the month of June-July. The price change was to run from June 15 to July 14, 2023.

The rise is a result of the Finance Act 2023 which sets VAT on fuel at 16 Percent.

The High Court on Friday, however, suspended the implementation of the Finance Act 2023.

The Act is a product of a finance Bill passed by Parliament last week and assented to the law on Monday by President William Ruto.

Lady Justice M Thande in her ruling said she was satisfied that Senator Omtatah’s application met a threshold for conservatory orders.

“I am satisfied that the application meets the test of conservatory orders and I do grant prayers 2 and 3 of the application until July 5, 2023, when the matter is scheduled for mention for directions,” Justice Thande ruled.

The court further issued interim orders prohibiting the respondents and the interested parties or their agents howsoever acting from giving effect to the Finance Act, 2023.

Thande further directed that the applications be served upon all parties today Friday, June 30 and responses be filed and served by July 4, 2023.

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