The government has introduced subsidies on fuel prices to cushion Kenyans from the high prices of the commodities.
The Energy and Petroleum Regulatory Authority (EPRA) has announced compensating oil marketers for Kes 7.33 for super petrol, Kes 3.59 for diesel, and Kes 5.74 for kerosene using the Petroleum Development Fund (PDF).
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilize pump prices for the August-September 2023 pricing cycle.”
“Oil marketing firms will be compensated from the Petroleum Development Fund (PDF),” EPRA said.
EPRA Director General Daniel Bargoria, in a statement on Monday, stated that the retail prices of petroleum products will be in force from August 15 to September 14.
Did you read this?
"In the period under review the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene remain unchanged," EPRA said.
Without compensation, a litre of petrol would have increased to Kes 202.10 today from Kes 194.68.
Diesel would have also gone up to Kes 183.26 and Kes 175.22 for kerosene.
Only in May did President William Ruto’s regime end the fuel subsidy programme as part of an agreement with the International Monetary Fund.
It followed a Kes 3.40, Kes 6.40, and Kes 15.19 rise in super, diesel, and kerosene costs.
Starting in July as well, prices of commodities went up on the increase in value-added tax (VAT) on fuels from 8 per cent to 16 per cent.
“The interventions in place have not borne any fruit. On fuel subsidy alone, the taxpayers have spent a total of Kes 144 billion, a whopping Kes 60 billion in the last 4 months,” Ruto said.
