EPRA cuts petrol by Sh9.37, diesel by Sh10.21 after VAT slash to 8pc

NAIROBI, Kenya, April 15 – Petrol and diesel prices have dropped by Sh9.37 and Sh10.21 respectively after the National Treasury reduced Value Added Tax (VAT) on petroleum products from 13 percent to 8 percent.

As a result, a litre of petrol in Nairobi will retail at Sh197.60 while diesel will cost Sh196.63 from midnight. Kerosene prices remain unchanged at Sh152.78.

The reduction comes just a day after the Energy and Petroleum Regulatory Authority (EPRA) raised fuel prices, with petrol increasing by Sh28.69 and diesel by Sh40.30 despite a prior VAT cut and a Sh6 billion subsidy.

Following that review, petrol had risen to Sh206.70 per litre and diesel to Sh206.84, up from Sh178.28 and Sh166.54 respectively.

The latest VAT adjustment follows an announcement by William Ruto during a development tour in Kisii County, where he said the government would lower VAT on fuel to cushion consumers from rising global oil prices.

The move is expected to ease pressure on households and businesses grappling with high transport and energy costs.