Gas Prices Rise: Kenyans Ready For Fuel Hike

Gas Prices Rise: Kenyans Ready For Fuel Hike

From East African Business Week

Kenyans are bracing for another hike in fuel prices following the decision by the government to slap a new tax levy on all imported goods.

The hiked prices could come into force as early as next month during the monthly fuel review by the national regulator, Energy Regulatory Authority (ERC).

Kenya is currently and net importer of oil and it forms a huge chunk of the country’s import bill apart from machinery.

Oil marketers in the country have already sounded the alarm bells indicating that the industry has no option but to pass the new 1.5 per cent levy on all imported goods to the consumers.

The marketers accused the ERC of not factoring the levy in the June 14th fuel review giving the clearest indication that the levy will be included in the review for August.

According to Total Kenya Managing Director, Alexis Vovk, oil marketers are in discussion with ERC over the possibility of the fuel hike next month also covering for this month to cushion the industry from likely losses as a result of the operationalization of the new levy.

Read more at East African Business Week.