The Energy and Petroleum Regulatory Authority (EPRA) Chief Executive Officer (CEO) Daniel Kiptoohas clarified that the government has not returned fuel subsidies.
EPRA says the Petroleum Development Levy was utilised as compensation to stabilize prices.
Further, Kiptoo revealed that the holding of pump prices is consistent with the policy pronouncements of the Kenya Kwanza Administration.
“What has been applied is stabilization not a subsidy. The petroleum development levy was put in place to amongst other things cussion Kenyans from spikes in petroleum pump prices,” he said.
He stated that the PDL is a fund for a rainy day, and no public funds have been used.
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“We have not applied any exchequer funding which would be a subsidy but simply given back to Kenyans their money which we have collected from them in the past,” he stated.
“It is within the funds that have been collected and does not need any exchequer support as was the norm in the previous administration which employed exchequer funds which made it a subsidy.”
He reiterated that the compensation is in the form of a stabilization fund anchored in law.
