As attached in the briefing by ERC excise duty didn't apply in super petrol from the excise act;
Marginal impact of Excise Duty in December 2015 pump prices review
The effect of the Excise Duty Act 2015 on petroleum pump prices has been marginal, according to the latest monthly price review by ERC. Today's price review set out petroleum pump prices for the period 15th December 2015 to 14th January 2016.
Excise duty for Super Petrol remained the same at Kshs 19.895 per litre while kerosene remained zero rated. However, one cargo of diesel was increased by Kshs 2.061 per litre. The other diesel cargoes considered in this month’s price review remain unaffected since their last dates of discharge were before the effective date of the new excise tax (i.e. 1st Dec 2015). This has been verified with the Kenya Revenue Authority.
Taking account of the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump price are as follows: Super Petrol reduces by Kshs 0.40 per litre, Diesel reduces by Kshs 1.15 per litre while Kerosene reduces by Kshs 1.54 per litre.
Accordingly, the prices of super petrol, diesel and kerosene per litre in Nairobi during this period will be Kshs 90.06, Kshs 78.51 and Kshs 53.27, respectively.
For information, the general reduction in petroleum prices during this period was a consequence of the average landed cost of imported Super Petrol decreasing by 0.88% from US$ 546.85 per ton in October 2015 to US$ 542.02 per ton in November 2015. For diesel, the average landed cost decreased by 6.19% from US$ 506.93 per ton to US$ 475.53 per ton. The average landed cost of imported Kerosene decreased by 4.93% from US$ 510.88 per ton to US$ 485.70 per ton.
The Free On board (FOB) price of Murban crude oil lifted in November 2015 was posted at US$ 43.55 per barrel, a decrease of 7.93% from US$ 47.30 per barrel in October 2015. Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.30% from KES 102.51 per US$ in October 2015 to KES 102.20 per US$ in November 2015.
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