Government and Policy

Has Ruto Gone Back To Fuel Subsidies?

BY Getrude Mathayo · August 15, 2023 06:08 pm

The Energy and Petroleum Regulatory Authority (EPRA) has announced the fuel prices for the period of August 15 to September 14.

In a statement released on Monday 14^th August, EPRA Director General Daniel Bargoria said that the prices of Super Petrol, Diesel, and Kerosene will remain unchanged.

“Super Petrol, Diesel, and Kerosene will retail at Ksh194.68, Ksh179.67, and Ksh169.48 effective midnight in Nairobi,” read part of the release

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EPRA Director General added that there is a need to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, as the landed costs for Super Petrol increased by 6.84%, Diesel by 4.29%, and Kerosene by 7.41%.

“The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers,” said Bargoria.

The prices are inclusive of the 16 percent Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.

EPRA revealed that to cushion Kenyans from the high fuel prices, the government opted to stabilize pump prices for the said period. Super petrol will still retail at Ksh.194 per liter, Diesel at Ksh.179, and Kerosene at Ksh.169.

According to EPRA, the price for Super Petrol was calculated at Ksh202.01, Diesel at Ksh183.26, and Kerosene at Ksh175.22, there the oil marketers shall be compensated Ksh7.33, Ksh3.59, and Ksh5.74 per liter respectively.

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Kiptoo assured Kenyans of the continued commitment to ensuring both consumers and investors are protected from high fuel prices.

In February, President William Ruto vowed that his administration would not reintroduce subsidies on petroleum products, arguing that the subsidies were economically untenable and had been abused by his predecessor Uhuru Kenyatta to benefit a few individuals.

“We will not go back to subsidies that benefit brokers, cartels, and politically correct people. We are going to promote instead production,” he said at a past public address.”