Economy Consumers to be hit by all time high pump prices Saturday after VAT reviewA fuel attendant holding a fuel pump at the filling station along Kimathi Street. FILE PHOTO | NMGBy JOHN MUTUAMore by this AuthorConsumers are bracing for historic high pump prices from Friday midnight after the doubling of value added tax (VAT) to 16 percent, in what will spark fresh inflationary pressure and further squeeze pockets. Read: How pump prices will look after Ruto’s 16pc VATThe record-high prices will spark a fresh surge in the cost of services and products as manufacturers and service providers pass the increased costs of energy and transport to consumers. Producers of services such as electricity and manufactured goods are also expected to factor in the higher cost of petroleum. Inflation— the measure of the cost of living— rose to eight percent last month from 7.9 percent and the higher fuel prices are expected to drive it higher.

Source: The North Africa Journal June 29, 2023 12:14 UTC