State slaps consumers with Sh7 hike in fuel tax

The government has increased the tax payable to the Energy and Petroleum Regulatory Authority (Epra) by Sh7 per litre of super petrol and diesel.

This is despite the earlier promise of not effecting the additional cost after receiving complaints from the public that the review will raise the cost of fuel.

According to the latest fuel price review by the regulator, the proposed increase in road maintenance levy has been effected in the retail prices starting July 15 to August 14.

This is from the previous Sh18 per litre of super petrol and diesel to Sh25.

However, the general fuel prices for the period under review were revised downward.

"The maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene decrease by Sh1.00, Sh1.50 and Sh1.30 per litre, respectively," Epra said in a statement on Sunday.

Pump prices in the country's capital of Nairobi for Super Petrol, Diesel and Kerosene will now retail at Sh188.8, Sh171.6 and Sh161.75, respectively.

The move to effect the additional tax on fuel comes barely a week after the Ministry of Transport concluded public participation on the matter.

According to the former Road and Transport CS Kipchumba Murkomen, the additional Sh7 on the levy was meant to address the road maintenance fund shortage whose deficit stands at about Sh78 billion.

The majority of the stakeholders from the public participation however decried the proposal on the grounds that it risks raising fuel prices in the long term pushing up the general cost of living.

The Ministry then promised to take into account the public concern and said it would explore ways of getting the resources needed to maintain roads without raising the cost of living through an increase in petroleum prices.

"We will analyse the reports received on email and social media platforms as well as the verbal submissions and come up with a decision that corresponds with the recommendations from the public," former CS Murkomen said.

"As suggested by Kenyans, we will only make this decision when we are certain that any revenue measures adopted will not result in a rise in the cost of living."