New Fuel Prices

 Energy Regulatory Commisssion To Release New Prices

Fridah Nyanchama

As the Energy Regulatory Commission (ERC) prepares to publish its monthly revised fuel prices, it is not only the motorists who will be having their fingers crossed, but manufacturers, distributors and consumers along the value chain will also be on the lookout to see if the new Excise Duty Act 2015 will have any bearing on cost.
Some manufactures have adjusted their prices to match the new taxes with East Africa Breweries Limited (EABL), the region’s largest beer brewer adding Sh30 shillings to every litre of beer.
The Act imposes a specific excise rate on a number of products including cigarettes and tobacco, alcoholic and sugar sweetened beverages, fossil fuels, aging motor vehicles and environmentally damaging plastic bags.
The situation is not helped by the recent surge in inflation, after a research by Trading Economics revealed that Kenya’s annual inflation rate accelerated to 7.32 per cent in November, up from 6.72 per cent reported in the previous month. The Government desired inflation target rate is five per cent.
The latest rise in the rate had been fuelled by increase in the cost of food, housing and utilities. This was also confirmed by the Kenya National Bureau of Statistics (KNBS), which stated that the prices of basic foodstuffs, mainly grains, had increased.