Gov't increases road maitenance levy despite drop in fuel prices for July-August

The Energy & Petroleum Regulatory Authority (EPRA) has announced a decrease in the maximum retail prices of petroleum products, effective from 15th July 2024 to 14th August 2024.

This period will see a drop in prices for Super Petrol, Diesel, and Kerosene, providing some relief to motorists and households.

"In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, the Energy & Petroleum Regulatory Authority (EPRA) has calculated the maximum retail prices of petroleum products which will be in force from 15th July 2024 to 14th August 2024," said EPRA in a statement.

According to EPRA, the prices will decrease as follows:

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These new prices are inclusive of the 16% Value Added Tax (VAT) as mandated by the Finance Act 2023 and other relevant tax laws. The adjustments also consider revised rates for excise duty adjusted for inflation.

The reduction in fuel prices is attributed to the decrease in the average landed cost of imported petroleum products.

In June 2024, the landed cost of Super Petrol decreased by 4.65% from US$750.95 per cubic metre in May to US$716.03 per cubic metre.

Diesel saw a decrease of 1.19%, dropping from US$690.99 to US$682.73 per cubic metre. However, Kerosene experienced a slight increase of 2.01%, rising from US$679.14 to US$692.80 per cubic metre.

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In Nairobi, the cost breakdown for Super Petrol, Diesel, and Kerosene includes several components such as the landed cost, pipeline transport, and various taxes and levies. The new prices per litre in Nairobi are as follows:

One significant change in the cost structure is the increase in the Road Maintenance Levy from Sh18 to Sh25 per litre in the July-August price cycle.

This is despite the pronoucements by former Transoport Cabinet Secretary Kipchumba Murkomen that the government will find other avenues to raise money to maintain the roads.

"We will explore ways of getting the resources we need to maintain roads, as expressed by Kenyans in their numbers, without raising the cost of living through an increase in petroleum prices," said Murkomen in a released dated July 8, 2024.

The pump prices will be reviewed next on August 14, 2024.