Gov’t puts up Fuel Subsidies as a Cushion to The rising prices.
In the Just completed review by the Energy and Petroleum Regulatory Authority (EPRA), the prices rose up by Ksh5.72 per litre for Super Petrol, Ksh4.48 per litre for Diesel and Ksh2.45 per litre for Kerosene.
This means, as fuel increases, so does other essential commodities, which will force to dig even deeper into their pockets.
EPRA however, has stated that the government used the Petroleum Development Levy (PDL) to cushion Kenyans from paying even higher fuel prices. Apparently, The levy is among the nine taxes imposed on petroleum products.
EPRA revealed that Super petrol was meant to increase by Ksh8.79 per litre, Diesel by Ksh16.12 per litre and Kerosene by Ksh12.05 per litre.
Which means that Super Petrol would cos Ksh220,43, Diesel will retail at Ksh217.11, and Kerosene cost Ksh214.66 per litre.
EPRA stated,”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 October – November 2023 pricing cycle.”
”Oil Marketing Companies (OMCs) will be compensated for the under recovery of costs from the Petroleum Development Levy (PDL) in line with the PDL, Order of 2020,” EPRA added.
In August, The government refuted claims of the return of fuel subsidies, citing that it was using fuel stabilisation through the Petroleum Development Levy.
However, EPRA clarified that the Fuel stabilisation is a compensation fully paid from the Petroleum Development Fund.
Also read Breaking News: EPRA Releases New Fuel prices