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Fuel prices set to increase after the Ministry of Transport proposed an increase of Ksh7 to the Fuel Levy Charge from the current Ksh18 to Ksh25 per litre in the 2024 Finance Bill.

Transport Cabinet Secretary Kipchumba Murkomen said the current fuel levy rates has remained unchanged since July 2016 and no longer reflect the escalating costs of road construction and maintenance due to inflation.

“In 2016, the Fuel Levy was set at Ksh18 per litre, the pump price of petrol in Nairobi was Ksh95. As of May 2024, the price has soared to Ksh194, while the levy remains unchanged. This stark contrast illustrates the diminishing value of the Fuel Levy due to inflation,” he explained.

Murkomen spoke when appeared before the National Assembly Finance Committee on Stakeholders Engagement on Finance Bill 2024 on Tuesday.

The proposal targets to generate up to Ksh115 billion annually from fuel levy for road maintenance, rehabilitation, and development across the country, compared to the current ksh83 billion collected, generating Ksh32 billion more.

Mukomen said an increase in the fuel levy could stop the rising maintenance backlog that continues to increase due to deterioration on account of neglected maintenance.