In the latest pumping cycle from July 1 to July 14, 2023, the breakdown of fuel taxes and levies in Kenya has been unveiled. The figures indicate the share of taxes and levies as a percentage of the retail product price for different fuel types. The data highlights the following proportions:
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- Petrol: Taxes and levies make up a significant portion of the retail price of petrol, accounting for approximately 39.9%. This indicates that nearly 40% of the retail price paid by consumers for petrol is attributed to various taxes and levies imposed by the Kenyan government.
- Diesel: Similar to petrol, the decomposition of fuel taxes and levies for diesel reveals that approximately 36.2% of the retail price is comprised of taxes and levies. This indicates that a significant proportion of the price Kenyan consumers pay for diesel is attributed to government-imposed charges.
- Kerosene: Among the three fuel types examined, kerosene has a relatively lower share of taxes and levies. Approximately 34.1% of the retail price of kerosene is attributed to taxes and levies. This indicates that taxes and levies have a slightly lower impact on the retail price of kerosene compared to petrol and diesel.
These figures shed light on the significant contribution of taxes and levies to the overall retail prices of petrol, diesel, and kerosene in Kenya. The inclusion of such a substantial percentage of taxes and levies emphasizes the influence of government policies and regulations on fuel costs borne by consumers.
It is important to note that these percentages represent the specific pumping cycle from July 1 to July 14, 2023, and may vary in subsequent periods based on changes in government policies and fuel pricing mechanisms.
The decomposition of fuel taxes and levies provides valuable insights for consumers, policymakers, and stakeholders in understanding the breakdown of fuel costs and the factors influencing retail prices in Kenya.