You have to pay the IMF while the jomo Kingdom privatize all critical sectors in Kenya.
Jaza tank sasa
Petrol should actually retail at 200/- per litre. Only rich men like me should be allowed to drive. Hii upuus ya wakenya kujaza barabara na tugari twa 900cc kama ile toyorra passo ya @kush yule mnono na nissan march ya @Azor Ahai inafaa iishe from today.
Ofcourse latrine sweepers like @poyoloko and vipiis like @Jimit should take the bus without disturbing the peace and tranquil in the village.
Ends!
Tunaenda kwa Suluhu sasa.
Enda leta picha nanii
let me fix my bike,jalopy naona nkiiacha parking for a while.
Let us complete the journey tafadhali.
Kenya’s greatest ever president cannot be allowed to fail by small things like Coronavirus.
Petrol price is determined automatically by a formula that was passed by Parliament ages ago. It has nothing to do with Mr keniarra or IMF. The only way to get low prices is to ask bunge to change the petrol price formula.
What is it with Magufuli worshippers and lying?
IMF pushes for fuel tax rise in $2b loan deal - The East African
[SIZE=6]IMF pushes for fuel tax rise in $2b loan deal[/SIZE]
THURSDAY APRIL 08 2021
An attendant at a Total Petrol Station in Nairobi. FILE PHOTO | NMG
Summary
[ul]
[li]Petrol is currently retailing at a level last seen in November 2011 while diesel is selling at the highest level since December 2018.[/li][li]The IMF’s push for the fuel tax was revealed in an advisory to the government after the fund’s board approved a new loan for Kenya valued at $2.34 billion.[/li][li]The introduction of the standard 16 percent VAT on fuels, which has been pushed back several times previously, is part of latest attempts to raise State revenues.[/li][/ul]
By OTIATO GUGUYU
More by this Author
Kenya’s Treasury is under pressure from the International Monetary Fund (IMF) to double the value added tax (VAT) on all petroleum products in an effort to cut budget deficit and tame public borrowing.
The multilateral financier reckons that Kenya should impose a 16 percent VAT on fuels from the current eight percent when crude oil prices fall, signalling the fund is open for a delayed implementation to guard against growing public anger and pressure over soaring petroleum costs in the country.
Petrol is currently retailing at a level last seen in November 2011 while diesel is selling at the highest level since December 2018.
The IMF’s push for the fuel tax was revealed in an advisory to the government after the fund’s board approved a new loan for Kenya valued at $2.34 billion to help the country continue responding to the Covid-19 pandemic and address its debt vulnerabilities.
The introduction of the standard 16 percent VAT on fuels, which has been pushed back several times previously, is part of latest attempts to raise State revenues.
President Uhuru Kenyatta was in 2018 forced to halve VAT on fuel to eight percent after the introduction of the full tax prompted protests from motorists and business lobbies.
Now, the IMF is asking Kenya to consider the fuel tax at a time when the multilateral lender is expected to play a role in shaping policy that would require the government to implement tough conditions across many sectors.
“If needed to meet fiscal objectives, capitalise on lower fuel prices by aligning fuel VAT to the standard rate,” the IMF told the government.
“Oversupply and volatility in the oil market would be a positive shock for Kenya, easing potential external balance pressures from other sources.”
The IMF advisories come on the back of its multi-billion-shilling loan facility to Kenya where money flows straight into the budget to top up the public purse.
Under the administration of former President Mwai Kibaki, Kenya kept away from this type of credit, with most of the support from institutions like the IMF and the World Bank coming in the form of project support.
Kenya has recently faced a deteriorating cash-flow situation, marked by falling revenues, worsening debt service obligations, and the effects of the Covid-19 pandemic.
The sharp rise in fuel prices since the start of the year has shifted the spotlight on taxation of petroleum products, with Kenyans in border towns reportedly seeking cheaper fuel in the neighbouring countries of Tanzania and Uganda.
There are seven levies and two taxes that the Energy and Petroleum Regulatory Authority (Epra) takes into account when setting fuel prices, which have been blamed for the high cost of super petrol, diesel and kerosene.
Taxes and levies account for Ksh57.33 ($0.53) for every litre of super petrol, and Ksh45.47 ($0.42) and Ksh39.55 ($0.36) per litre of diesel and kerosene, respectively.
Excise duty accounts for the biggest chunk of the taxes and levies at Sh21.95 per litre in the latest prices followed by road maintenance levy (Sh18), VAT (Sh9.10) and the petroleum development levy (Sh5.40).
Others are railway development levy, anti-adulteration levy, merchant shipping levy and the import declaration fee.
Epra also considers the landed cost of petroleum imports, margins for the oil marketing companies, and storage and distribution costs when setting the fuel prices.
Kuna mahali nimeona that senile mzee from senate saying alikuomba 300bob ukaingia mitini without looking back,mafuta ya 200bob per litre ndio utawezana kweli
Nashukuru niko na punda.
Point of correction, ya @Azor Ahai ni Nissan Note. Asande
Maliseni hio Muchiri kabisa
The IMF only made a suggestion regarding prices in the future which the govt can chose to ignore in public interest. Also the petrol pricing formula was set years before uhuru became president. See the Energy (Petroleum pricing) Regulations, 2010
Copied:
Tariff Setting : Petroleum
The Authority undertakes retail pricing of petroleum products (Diesel, Super Petrol and Kerosene) as stipulated in the Energy (Petroleum Pricing) Regulations, 2010.
The Pricing Regulations introduced a formula that EPRA uses in determining the maximum retail pump prices of Super Petrol, Regular Petrol, Diesel and Kerosene (the Regulated Products).
WHOLESALE PRICES
Pw = Cu (1+ Lp + Ld)+ K (1+ Ld) +mw
Where—
[ul]
[li]Pw = the maximum wholesale price for super petrol, kerosene or Automotive diesel;[/li][li]Cu = the weighted average cost in shillings per litre ex the Kenya Petroleum Refineries Limited (KPRL) and ex Kipevu Oil Storage Facility (KOSF).[/li][li]K = the transportation cost from Mombasa to the nearest wholesale depot, which is made up of x percent of pipeline tariff (Kpt) and (100 – x) percent of road bridging cost (Krd) as set out in the First Schedule.[/li][li]Lp = the allowed losses in the pipeline as set out in the Second Schedule[/li][li]Ld = the allowed losses in the depot as set out in the Second Schedule;[/li][li]mw = the allowed oil marketing company’s gross wholesale margin as set out in the Third Schedule.[/li][/ul]
RETAIL PRICES
For super petrol, kerosene and automotive diesel, the Pricing formula used is:
Pr = Pw + mr + z
Where,
[ul]
[li]Pr = the maximum retail pump price of super petrol, regular petrol, kerosene or Automotive diesel applicable, in shillings per litre;[/li][li]mr = the allowed maximum retail gross margin as set out in the Third Schedule;[/li][li]z = the delivery rate from the nearest wholesale depot to a retail dispensing site in Shillings per litre as set out in the First Schedule.[/li][/ul]
While determining the wholesale and retail prices for petroleum products, Economic Regulations incorporates the costs as indicated in the first and second schedule of the Energy (Petroleum pricing) Regulations, 2010.
The retail pump prices for Super Petrol, Automotive Diesel and Kerosene are published monthly on 15th of every month.
Hehehe i did not know kuna difference!?
Kimakia why are you bitter na ni asubuhi?
Goldfish memories and lies all round. Stereotypical Jubilee nonsense. Even going by that formula, there is absolutely no reason why Kenyans should be paying prices at a cost of Ksh 130 per litre! Wacha upuzi!
The IMF has since 2013,(when Uhuru was president) been pressuring Kenya to put petroleum products at a VAT of 16%. ( VAT fuel price crisis: Why IMF prescriptions cause governments problems - The Standard )
The pressure has been coming since Uhuru’s govt signed a deal to access credit facilities from those loan sharks. A simple google search would have easily told you this.
( https://www.imf.org/en/News/Articles/2015/09/14/01/49/pr1349 )
( https://www.imf.org/external/pubs/ft/scr/2013/cr13358.pdf )
The IMF has always suggested that uhuru raise petrol vat from 8% to 16% but he has always refused so you will continue paying 8% until 2022 but we dont know if whoever wins will be as tough with IMF like uhuru.
The law is the law and must be followed. Nothing to do with uhuru. The same formula has in the past given prices of 80bob and you never complained, so if the formula gives a total of 130 bob today you shouldn’t complain.
WHOLESALE PRICES
Pw = Cu (1+ Lp + Ld)+ K (1+ Ld) +mw
Where—
[ul]
[li]Pw = the maximum wholesale price for super petrol, kerosene or Automotive diesel;[/li][li]Cu = the weighted average cost in shillings per litre ex the Kenya Petroleum Refineries Limited (KPRL) and ex Kipevu Oil Storage Facility (KOSF).[/li][li]K = the transportation cost from Mombasa to the nearest wholesale depot, which is made up of x percent of pipeline tariff (Kpt) and (100 – x) percent of road bridging cost (Krd) as set out in the First Schedule.[/li][li]Lp = the allowed losses in the pipeline as set out in the Second Schedule[/li][li]Ld = the allowed losses in the depot as set out in the Second Schedule;[/li][li]mw = the allowed oil marketing company’s gross wholesale margin as set out in the Third Schedule.[/li][/ul]
RETAIL PRICES
For super petrol, kerosene and automotive diesel, the Pricing formula used is:
Pr = Pw + mr + z
Where,
[ul]
[li]Pr = the maximum retail pump price of super petrol, regular petrol, kerosene or Automotive diesel applicable, in shillings per litre;[/li][li]mr = the allowed maximum retail gross margin as set out in the Third Schedule;[/li][li]z = the delivery rate from the nearest wholesale depot to a retail dispensing site in Shillings per litre as set out in the First Schedule.[/li][/ul]
Nilicheki iyo kitu man nkadedi. Huyo mjamaa ata sijui anapata wapi nguvu ya kuniquote
You can tell just how peasant a man is by how he reasons. I am pretty sure that the likes of @Jimit Wanjigi do not mind the price of gas but at the same they wouldn’t advocate increasing it’s price. Man you’re such a peasant in real world it’s affected your reasoning.