Collections from fuel anti-adulteration levy are expected to cross the Sh4 billion mark for the first time in the financial year between July 2023 and June 2024.
The Treasury projects it will collect Sh4.2 billion in the new financial year 2023/24, an increase from the Sh3.8 billion expected to be collected in the financial year that ended last week.
The levy was introduced through the Finance Act of 2018, following an amendment to the Miscellaneous Fees and Levies Act of 2016, at Sh18 for every litre of illuminating kerosene imported and targeted addressing the vice of adulterating diesel through harmonising the prices of these fuels.
The Energy and Petroleum Regulatory Authority (Epra) in the past told the Business Daily that the adoption of the levy has enhanced compliance levels by weeding out those who capitalised on the price gap between kerosene and diesel to engage in adulteration.
“Before September 2018 the difference between the price of diesel and kerosene was almost Sh18 to Sh20 and of course that was the biggest incentive for the individuals who engaged in adulteration at the time. Ever since the adoption of the levy, the activity of adulteration has almost flattened out,” Epra Petroleum and Gas director, Edward Kinyua, said.
The regulator said further steps have been taken to enhance the traceability of products to keep players on a tight leash.
Kerosene has traditionally been a low-hanging fruit for unscrupulous traders given its low price.
“We also mark kerosene with another identifier which is not visible to the normal eye and these markets are chemically tested and cannot affect the specification of the product and they also cannot affect the consumer,” Mr Kinyua said.
