Oil marketers implement higher Epra prices despite court order
A Rubis station in Nairobi city centre on Saturday, July 1, 2023.
Oil marketers in Kenya have implemented higher fuel prices announced by Epra Friday despite a court order suspending the Finance Act 2023.
Users in Nairobi are buying petrol at Sh195.5, diesel at Sh179.6, and kerosene at Sh173.4.
The Energy and Petroleum Regulatory Authority (Epra) on Friday, June 30 announced record fuel prices after the Finance Act, 2023 doubled the value-added tax (VAT) charged on the commodity to 16 per cent from 8 per cent.
The implementation comes despite the Nairobi High Court announcing the suspension of the Finance Act 2023 after Busia Senator Okiya Omtata challenged the Cabinet Secretary for National Treasury and Planning at the Milimani Law Courts over the enforcement of the new Finance Act 2023.
Justice Mugure Thande temporarily suspended implementation of the Act until July 5, 2023, when the matter is scheduled for mention, after a case filed by Busia Senator Okiya Omtatah.
A Shell petrol station along Nairobi's Kimathi Street on Saturday, July 1, 2023.
“This matter coming up on 30.6.23 for directions on the Notice of Motion dated 29.6.23 before Honorable Justice M. Thande upon considering the same; It is hereby ordered that the application be served today 30.6.23 to all parties, that responses be filed and served by 4.7.23 and that I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until 5..23 when the matter is scheduled for mention for directions,” said Justice Thande in her June 30, 2023, ruling.
Epra, however, defied the court ruling and increased the price of petrol by Sh13.49 per litre, diesel by Sh12.39 per litre and kerosene by 11.96 per litre.
Others named as interested parties in the case include Kenya Revenue Authority Acting Commissioner General Rispah Simiyu.
According to Senator Omtata, the Finance Act contains 30 sections that contravene the Constitution on taxation matters and he is joined by several other activists including Eliud Matindi, Michael Otieno, Benson Otieno and Blair Oigoro in suing the National Treasury.
The increase in fuel prices will have a knock-on effect on consumers, who will have to pay higher transport, food and electricity bills, which are already higher than usual.
