Petrol pump prices will increase by upto Sh12 for every litre from next week after Members of Parliament voted to double the Value Added Tax (VAT) rate on petroleum products to 16 from eight percent, in a decision that promises to hit households hard.
The higher fuel costs, which are expected to be effective July 1 as the Kenya Kwanza administration targets an extra Sh50 billion from fuel taxes, will also cause more pain to motorists, distributors and manufacturers.
