The Energy and Petroleum Regulatory Authority (EPRA) has announced the revision of maximum wholesale and retail petroleum prices in response to the recent amendment in Value Added Tax (VAT) rates.

Pursuant to the Finance Act, 2023, the VAT on Super Petrol (PMS), Diesel (AGO), and Kerosene (IK) will be revised from 8 per cent to 16 per cent starting from 1st July 2023.

In light of this new development, EPRA has undertaken the recalculations to determine the maximum pump prices that will be in effect from 1st July to 14th July 2023, incorporating the revised VAT rate of 16per cent.

"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 1st July 2023. Accordingly, the Energy Petroleum Regulatory Authority (EPRA) has recalculated the maximum pump prices that will be in force from 1st July to 14th July 2023 taking into account VAT at 16%," EPRA notice read.

As a consequence of the VAT increment, Nairobi will witness changes in the maximum allowed petroleum pump prices as follows: Super Petrol will increase by Sh13.49 per litre, Diesel by Sh12.39 per litre, and Kerosene by Sh11.96 per litre.

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"As a result, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by KShs.13.49 per litre, KShs.12.39 per litre and KShs.11.96 per litre respectively," the press release read.

This adjustment comes as a measure to comply with the updated VAT rates and reflects the changing dynamics in the energy and petroleum sectors.

The revised prices will come into effect starting from 1st July 2023, and EPRA urges all stakeholders to adhere to the new pricing structure during the specified period.