{"id":233863,"date":"2026-04-22T10:44:47","date_gmt":"2026-04-22T07:44:47","guid":{"rendered":"https:\/\/www.ghafla.co.ke\/ke\/?p=233863"},"modified":"2026-04-22T10:44:47","modified_gmt":"2026-04-22T07:44:47","slug":"fuel-dealers-warn-of-exponential-price-hikes-despite-government-tax-cuts","status":"publish","type":"post","link":"https:\/\/www.ghafla.co.ke\/ke\/fuel-dealers-warn-of-exponential-price-hikes-despite-government-tax-cuts\/","title":{"rendered":"Fuel Dealers Warn Of Exponential Price Hikes Despite Government Tax Cuts"},"content":{"rendered":"<p data-path-to-node=\"1\">The Petroleum Outlets Association of Kenya (PAOK) has dismissed the government\u2019s recent reduction of Value Added Tax (VAT) on petroleum products as a superficial &#8220;band-aid&#8221; that fails to address the deep structural rot in Kenya\u2019s energy sector.<\/p>\n<p data-path-to-node=\"2\">Speaking on <i data-path-to-node=\"2\" data-index-in-node=\"12\">NTV<\/i> on Tuesday, April 21, 2026, PAOK Chairperson Martin Chomba warned that while consumers might see a slight, temporary dip at the pump, the country is staring at &#8220;exponentially higher&#8221; prices within the next three months.<\/p>\n<h3 data-path-to-node=\"4\">The &#8220;Value Added&#8221; Contradiction<\/h3>\n<p data-path-to-node=\"5\">Chomba took a swipe at the very concept of VAT on fuel, arguing that the government is taxing a value that it does not create.<\/p>\n<p data-path-to-node=\"6\">\u201cThe government of Kenya doesn&#8217;t own even one litre of oil. All they do is regulate and control logistics,&#8221; Chomba stated. &#8220;The VAT on fuel is pointless because the government doesn&#8217;t add any value to fuel. We are so used to VAT that we have forgotten the meaning.\u201d<\/p>\n<h3 data-path-to-node=\"7\">The Stabilisation Fund Controversy<\/h3>\n<p data-path-to-node=\"8\">A major point of contention for the petrol station owners is the government\u2019s handling of the Petroleum Development Levy (PDL). Of the Ksh 17 billion currently in the stabilization fund, the government only released Ksh 6.2 billion to cushion Kenyans.<\/p>\n<p data-path-to-node=\"9\">PAOK argues that by withholding nearly Ksh 11 billion, the state has left the country defenseless against global shocks, especially given the ongoing volatility in the Middle East.<\/p>\n<ul data-path-to-node=\"10\">\n<li>\n<p data-path-to-node=\"10,0,0\">The 3-Month Warning: Chomba noted that because Kenya prices fuel based on the weighted average of ships arriving between the 9th and 10th of every month, the lack of a robust stabilization buffer now will lead to a massive price surge by July.<\/p>\n<\/li>\n<\/ul>\n<h3 data-path-to-node=\"12\">The Ghost of National Oil (NOC)<\/h3>\n<p data-path-to-node=\"13\">Chomba traced the current crisis back to historical policy failures, specifically blaming the Kibaki-era reforms for &#8220;killing&#8221; the National Oil Corporation (NOC). He argued that by reducing state involvement, Kenya handed over total control to private marketers, leaving the market at the mercy of purely commercial interests.<\/p>\n<p data-path-to-node=\"14\">\u201cWe are here because Kibaki\u2019s regime slept on the job,&#8221; he remarked. &#8220;We got here when we killed the National Oil Corporation. Countries with strong national oil companies have better control over pricing.\u201d<\/p>\n<h2 data-path-to-node=\"15\">A Breakdown of the &#8220;Price Yo-Yo&#8221;<\/h2>\n<p data-path-to-node=\"16\">The latest EPRA pricing cycle (April 16 \u2013 May 14, 2026) reflects a chaotic month of policy shifts:<\/p>\n<ul data-path-to-node=\"17\">\n<li>\n<p data-path-to-node=\"17,0,0\">Initial Hike: Super Petrol was set to jump by Ksh 28.69 and Diesel by Ksh 40.30.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"17,1,0\">The Revision: Following the VAT reduction from 16% down to 8%, Petrol dropped by Ksh 9.37 and Diesel by Ksh 10.21.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"17,2,0\">Current Nairobi Prices: Super Petrol stands at Ksh 197.60, Diesel at Ksh 196.63, and Kerosene at Ksh 152.78.<\/p>\n<\/li>\n<\/ul>\n<h3 data-path-to-node=\"18\">The Way Forward<\/h3>\n<p data-path-to-node=\"19\">Industry players are now urging the government to move beyond tax adjustments and focus on diversifying oil import sources. PAOK insists that unless the government regains control over the supply chain and fully utilizes the stabilization levy, the &#8220;relief&#8221; announced by President Ruto will be swallowed up by market volatility before the end of the quarter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Petroleum Outlets Association of Kenya (PAOK) has dismissed the government\u2019s recent reduction of Value Added Tax (VAT) on petroleum products as a superficial &#8220;band-aid&#8221; that fails to address the deep structural rot in Kenya\u2019s energy sector. Speaking on NTV on Tuesday, April 21, 2026, PAOK Chairperson Martin Chomba warned that while consumers might see [&hellip;]<\/p>\n","protected":false},"author":6073,"featured_media":190462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[310],"tags":[138724,138448],"class_list":["post-233863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-fuel-prices-news","tag-vat-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fuel Dealers Warn Of Exponential Price Hikes Despite Government Tax Cuts - Ghafla! Kenya<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghafla.co.ke\/ke\/fuel-dealers-warn-of-exponential-price-hikes-despite-government-tax-cuts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fuel Dealers Warn Of Exponential Price Hikes Despite Government Tax Cuts - Ghafla! Kenya\" \/>\n<meta property=\"og:description\" content=\"The Petroleum Outlets Association of Kenya (PAOK) has dismissed the government\u2019s recent reduction of Value Added Tax (VAT) on petroleum products as a superficial &#8220;band-aid&#8221; that fails to address the deep structural rot in Kenya\u2019s energy sector. Speaking on NTV on Tuesday, April 21, 2026, PAOK Chairperson Martin Chomba warned that while consumers might see [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ghafla.co.ke\/ke\/fuel-dealers-warn-of-exponential-price-hikes-despite-government-tax-cuts\/\" \/>\n<meta property=\"og:site_name\" content=\"Ghafla! 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