Nyoro proposes VAT cuts, fuel levy withdrawal to lower pump prices by Ksh.26

People’s Party of Kenya (PPK) leader Ndindi Nyoro has given the government until the weekend to lower fuel prices, accusing President William Ruto’s administration of exploiting Kenyans through inflated petroleum costs and increased margins for fuel importers and distributors.

Addressing party aspirants and delegates from across the country at the party headquarters, Nyoro claimed the latest fuel price adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA) were inconsistent with the current international oil market trends. 

He argued that the cost of imported petroleum products had declined even as consumers faced higher pump prices.

He warned the government to act immediately to ease the financial burden on households and businesses.

“Bei ya mafuta lazima mshukishe. Sisi we're peace-loving, hence why we choose to give simple and free advice. Tusiende wikendi kama mafuta haijashuka,” Nyoro stated. 

He questioned EPRA’s explanation for the latest increase, citing figures he said showed that the landed cost of diesel had fallen from Ksh.167 in May to Ksh.138 currently.

“Yesterday, EPRA purported that the landed cost was higher. In May this year, the landing cost of diesel was Ksh.167. The landing cost as of now is Ksh.138, yet you're purporting to increase diesel prices yet globally the prices have reduced,” he remarked. 

The PPK leader accused the government of allowing fuel importers to benefit from increased margins while ordinary Kenyans struggled with the rising cost of living.

“When Kenyans are languishing, the importers' margin has gone up by 12%. I want to tell you Ruto and this government's thieves, bei ya mafuta lazima ishuke,” Nyoro said.

He claimed the importers' margin had become a channel for patronage, alleging that the arrangement was costing the country Ksh.2.7 billion monthly, money he argued could instead support public services, including healthcare.

“Importers' margin, EPRA, rebrand it. There's no importer margin, that is patronage margin. They're stealing from Kenya Ksh.2.7 billion monthly,” he said.

Nyoro also questioned the margins allocated to fuel retailers and distributors, alleging that the additional costs were contributing to the high prices paid by consumers. He called for greater scrutiny of the companies operating in the sector and the financial arrangements governing petroleum distribution.

Nyoro said the government could reduce pump prices by removing taxes and using funds already allocated in the national budget to stabilise petroleum prices.

He argued that Parliament should consider removing the 16 per cent value-added tax (VAT) component he cited as contributing to the cost of fuel, saying the move would immediately lower prices.

“As they organise their greed, we're offering them solutions. One, when you look at the fuel prices, Ksh.16 is VAT. Since Parliament is yours, remove it and the prices will reduce by Ksh.16,” he said.

Nyoro also pointed to the Petroleum Development Levy, saying Parliament had approved Ksh.25 billion for the fund, which he argued should be used to cushion consumers against rising fuel costs.

“In the budget, there's Ksh.25 billion passed in Parliament called Petroleum Development Levy, which is for stabilisation of fuel prices. We are saying take Ksh.5.5 billion, which will reduce fuel by another Ksh.10,” he highlighted. 

He maintained that the government could ease pressure on consumers without leaving Kenyans entirely exposed to fluctuations in international oil prices, calling for a review of the taxes, levies and margins factored into pump prices.

His remarks come as EPRA increased the prices of Super Petrol by Ksh.12.93 per litre and diesel by Ksh.9.90, while kerosene recorded a steeper rise of Ksh.28.49.

The regulator attributed the increases to higher international costs, with the average landed cost of imported Super Petrol rising by 11.81 per cent from 874.26 US dollars per cubic metre in August to 977.55 US dollars in September.