This archive report was first published on 4 August 2020.
On August 2, Petroleum PS Andrew Kamau revealed that the recent fuel price hike was caused by a calculation error by the Energy and Petroleum Regulatory Authority (EPRA).
According to PS Kamau, EPRA had not included excise duty in computing the Value-Added Tax (VAT), resulting in a miscalculation that had to be corrected in the latest pricing review.
On July 15, EPRA announced new fuel prices, resulting in a significant spike in prices compared to the previous 30-day period. Petrol prices rose by Ksh11.38 to retail at Ksh100.48 per litre in Nairobi, while a litre of diesel increased by Ksh17.3 to sell at Ksh91.87 in the capital.
EPRA initially blamed oil marketing companies for the error, stating that they had not adhered to Sections 13 and 14 of the VAT Act, 2013. However, PS Kamau clarified that the error was solely EPRA's, and there was no way to go back and ask oil marketers for what they didn't collect.
