President William Ruto says the Kenya Kwanza administration is using the Fuel Development Levy to help stabilise the current fuel prices, noting that the country will not go back to subsidy of any kind because they (subsidies) distort things and causes us a lot of unnecessary leakages in the economy.
Speaking on Wednesday in Uasin Gishu County at the ongoing Devolution Conference, the Head of State dismissed reports by a section of the media which had claimed that the government on Monday reinstated fuel subsidies in a major U-turn as it moved to cushion consumers from skyrocketing pump prices, following the arrival of a cheaper consignment of oil last week.
”I saw some story today in one of the dailies, saying we’ve gone back to subsidies on oil products. Let me tell the country, that we will not go back to subsidies of any nature. It distorts things and causes us a lot of unnecessary leakage,” Ruto said on Wednesday in Uasin Gishu County at the ongoing Devolution conference.
”If the Nation newspaper would bother to understand the facts, we are making prudent and proper use of the Petroleum Development Levy that is provided for in the law.”
EPRA (Energy and Petroleum Regulatory Authority) said late on Monday that the maximum retail price of a litre of Petrol would remain constant at 194.68 shillings, shielding consumers from an increase of 7.33 shillings, which the government will shoulder through a price stabilisation fund.
The body also dismissed reports of a return of the fuel subsidy explaining that the government has instead opted for fuel stabilisation through the Petroleum Development Levy.
Consumers pay Sh5.40 per litre of petrol and diesel, and Sh0.40 per litre of kerosene as PDL, which is among nine other taxes imposed on fuel products.