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Epra boss refutes fuel subsidy claims, says it is a stabilisation

Energy and Petroleum Regulatory Authority (Epra) Director General Daniel Kiptoo Bargoria has refuted claims that fuel prices have been subsidised, saying they have instead been stabilised to cushion taxpayers from petroleum price spikes.

He added that holding of fuel prices was in line with the Kenya Kwanza administration’s policy stance.

“The PDL is a fund for a rainy day such as this one. We have not applied for 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 added that the stabilisation was within the funds collected and did not require exchequer support, unlike the previous government’s practice of using exchequer funds, which turned it into a subsidy.

“As a result, the compensation is not a subsidy but rather a stabilization fund that is established in the legislation. If you take a look at the Kenya Kwanza manifesto, you’ll see that we vowed to ring-fence the money to protect pump prices on days like today.”

This follows Epra’s announcement on Monday that the prices of Super Petrol, Diesel and Kerosene for August and September will remain unchanged.

The authority stated that the prices are inclusive of the 16% Value Added Tax (VAT) in compliance with the Finance Act 2023, the Tax Laws (Amendment) 2020, and the revised rate of Excise Duty adjusted for inflation in line with Legal Notice No. 194 of 2020.

This means that Super Petrol will continue to retail at Sh194, Diesel at Sh179 and Kerosene at Sh169.

Kenyans would have had to dig deeper into their pockets if the government had not stabilised fuel prices as stated; Super Petrol would have been priced at Sh202, Diesel at Sh181 and Kerosene at Sh174.

President William Ruto had vowed in February that his administration would not reintroduce subsidies on petroleum products, claiming that the subsidies were financially unsustainable and had been exploited by his predecessor Uhuru Kenyatta to benefit a select few.

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