EPRA clarifies on return of 'fuel subsidy'


• Says state has instead opted for fuel stabilisation through the Petroleum Development Levy

Motorists queuing at a petrol station
Image: The-Star

While moving to use the Petroleum Development Levy to pay Oil Marketing Companies, the Energy and Petroleum Regulatory Authority has rejected the reinstatement of fuel subsidies.

According to EPRA, the government chose to stabilise fuel prices through the Petroleum Development Levy rather than resume fuel subsidies.

As one of nine additional taxes levied on fuel products, consumers must pay Sh5.40 for each litre of petrol and diesel and Sh0.40 for each litre of kerosene.

"Government has not returned to fuel subsidies; it has returned to fuel stabilisation through the Petroleum Development Levy- for every litre of petrol a motorist buys, a fraction goes to the PDL for stabilisation. This fund was being misused by the Handshake government," it said.

This relates to the August-September fuel cycle, during which, despite a greater import expense brought on by rising global prices, pump prices remained unaltered.

In Nairobi, a litre of petrol will continue to cost Sh194.68, a litre of diesel will cost Sh179.67, and a litre of kerosene will cost Sh169.48.

Prices would have increased to Sh202.01 for Super petrol, Sh183.26 for diesel and Sh175.22 a litre for kerosene.

"The holding of pump prices today is consistent with the policy pronouncements of the Kenya Kwanza administration. One that has been applied is stabilisation, not a subsidy," they said in a statement.

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