The Kenya Revenue Authority (KRA) is collecting KSh 62.89 from every litre of petrol sold making it the key beneficiary of the surge in pump prices.
This is a 39 percent jump in tax collections from what KRA collected over the past two years.
For instance, in June 2020, KRA collected KSh 45.1 in taxes and levies and KSh 51.6 in 2021 before the current KSh 62.89.
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The high cost of fuel has enhanced the KRA collection with taxes from fuel estimated at KSh 22.8 billion in June of average Kenya’s overall monthly duties of KSh 145 billion.
Kenya is experiencing a surge in crude oil prices since last year forcing the government to subsidize retail prices from April last year.
As earlier reported on WoK, fuel prices have hit a new high setting up the country for a new round of increases in the price of goods ans services.
On Tuesday, June 14, the Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices by KSh 9 per litre making it the highest in Kenya’s history.
This raised the cost of super to KSh 159.12 per litre while diesel will retail at KSh 140 per litre in Nairobi County.
Kerosene also went up and it will now retail at KSh 127 per litre.
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Epra added that the government will utilise the Petroleum Development Fund (PDL) to cushion consumers from the high prices.
While motorists will pay KSh 159.12 for a litre of petrol, the actual price is KSh 184.68.
This means that the government will pay KSh 25.76 form the fuel subsidy. The subsidy for diesel is KSh 48.19 per litre while that for kerosene is KSh 42.43 per litre.