Diesel and petrol prices slashed as new VAT is effected

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ERC has announced a reduction in fuel prices in latest review
ERC has announced a reduction in fuel prices in latest review

The prices of Diesel and Petrol have been reduced following the signing into law of the Finance Bill 2018 by President Uhuru Kenyatta. The President’s proposal to cut the fuel VAT from 16% to 8% was approved by parliament and on Friday morning he signed the Bill into law, with the ripple effects already set in motion.

In a press release, the Energy Regulatory Commission (ERC) has outlined the new prices, with the price of kerosene hiked. “As a result, the pump prices per litre in Nairobi of Super Petrol and Diesel decrease by Kshs 8.80 and Kshs 7.35 respectively, while that of Kerosene increases by Kshs 10.71,” said the director general of ERC Pavel Robert Oimeke. In Nairobi, the price per litre of Super Petrol is Kshs 116.79, Diesel price per litre is Kshs 108.12 and Kerosene retails at Kshs 108.41 per litre.

The new prices will be in force till October 14th, “Accordingly, ERC has recalculated the maximum pump prices that will be in force from 21st September to 14th October 2018taking into account the VAT at 8%,” he said in the statement.