The Energy and Petroleum Regulatory Authority (EPRA) has clarified that the government’s recent intervention in fuel prices does not signify a revival of fuel subsidies, but is rather a strategic approach to maintaining stability in fuel prices.
In a statement released by EPRA CEO Daniel Kiptoo, EPRA said that the utilisation of the Petroleum Development Levy (PDL) was not a return to the era of fuel subsidies, but a tactical move to balance and stabilise prices in an unpredictable market.
According to Kiptoo, the PDL served as a mechanism to cushion Kenyans from abrupt and drastic fluctuations in pump prices. He stated, “What has been applied is stabilisation, not a subsidy. The petroleum development levy was put in place to, amongst other things, cushion Kenyans from spikes in petroleum pump prices.”
The EPRA statement highlighted that the approach of maintaining pump prices aligns harmoniously with the policy direction of the Kenya Kwanza Administration, emphasising the government’s commitment to safeguarding citizens from undue economic strain.
EPRA CEO Daniel Kiptoo.
Crucially, the statement underlined that the funds utilised for these actions were drawn from the PDL, a dedicated reserve designed to mitigate economic shocks. EPRA unequivocally stated, “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.”
This distinction between stabilisation and subsidy was further underscored by Kiptoo, who explained, “It is within the funds that have been collected and do not need any exchequer support as was the norm in the previous administration which employed exchequer funds which made it a subsidy.”
With these clarifications, motorists and citizens can anticipate continuing prevailing fuel prices. In Nairobi, the price of a litre of petrol will remain unchanged at Sh194.68, diesel will continue at Sh179.67 per litre, and kerosene will retain its price of Sh169.48 per litre.
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