ERC reviews fuel prices as new levy kicks in


The Energy Regulatory Commission (ERC) on Friday slashed the prices of a litre of petrol and diesel by Sh8.80 and Sh7.35 respectively following the revision of VAT on fuel to eight per cent.

Kerosene prices will go up by Sh10.71 which hit poor households the hardest.

"Pursuant to the Finance Act 2018, the VAT on petrol , diesel and kerosene has been revised from 16 per cent to 8 per cent. Accordingly, ERC has recalculated the maximum pump prices that will be in force from September 21 to October 14, 2018 taking into account the VAT at eight per cent," ERC director-general Pavel Oimeke said in a statement.

A litre of petrol will now retail at Sh116.79 in Nairobi, diesel (Sh108.12) and Kerosene Sh108.41).

In Mombasa, a litre of super petrol will now be sold at Sh114.15, diesel and kerosene at Sh105.50 and Sh105.78 respectively.

In Nakuru petrol will retail at Sh117.25, diesel Sh108.81 and kerosene at Sh109.10. In Eldoret petrol will be Sh118.26, diesel Sh109.81 and kerosene will retail at Sh110.09

Kisumu petrol will retail at Sh118.25, diesel Sh109.81 and kerosene at Sh110.09.


The new fuel prices follows signing into law President Uhuru Kenyatta’s eight per cent VAT on fuel which was passed Thursday after opposition in Parliament failed to raise the requisite quorum.

The President's memorandum could only to be overturned by a vote supported by not less than 233 MPs. However, the opposition to the law was frustrated after a section of MPs walked out lead by Majority Leader Aden Duale and his Minority Leader counterpart, John Mbadi.

Treasury intends to raise Sh17.5 billion from eight per cent VAT on petroleum products and Sh9.8 billion from the “kerosene adulteration” tax.