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Fuel prices set to reduce

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The cost of petrol is set to come down to Ksh.124.23 in Nairobi

The cost of petrol is set to come down to Ksh.124.23 in Nairobi

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The cost of petrol is set to come down to Ksh.124.23 in Nairobi should MPs approve new recommendations to tame fuel costs by the Finance and National Planning Committee.

The Committee tabled its report recommending a variety of tax cuts in the costing of fuel on Tuesday evening.

Among the proposals include the halving of VAT on all three fuel products by four per cent from the current eight per cent and trim to the petroleum development levy charged on the supply of petrol and diesel to Ksh.2.90 from Ksh.5.40 presently.

At the same time, the Committee has backed the lowering of supplier margins- profits made by oil marketing companies (OMCs) by Ksh.3 per litre.

The proposals are now the subject of approval by all MPs on the floor of the National Assembly after which accompanying amendments to relevant Acts will be assented to or rejected by President Uhuru Kenyatta.

If adopted as proposed, petrol users would see the greatest relief at the pump with the cost of the commodity coming down by Ksh.10.49.

Presently, a litre of petrol in the Capital costs Ksh.134.72.