Govt Introduces Fuel Subsidy In August Review To Cushion Kenyans, EPRA Announces

• In the latest price review, super petrol will retail at KSh 194.68, diesel at KSh 179.67 and kerosene at KSh 169.48
• The retention of the current prices comes after the Energy and Petroleum Regulatory Authority (EPRA) reintroduced the subsidy programme
• If subsidy was not applied, petrol, diesel, and kerosene prices would have increased by KSh 7.33, KSh 3.59 and KSh 5.74 per litre, respectively.

Nairobi - Energy and Petroleum Regulatory Authority (EPRA) has announced new pump prices for the next month.

What are the new prices of fuel in Nairobi?

On Monday, August 14, the regulator announced that the prices for all fuel products remain unchanged effective Tuesday, August 15.

"Therefore, the maximum allowed petroleum pump prices for super petrol, diesel and kerosene will remain unchanged.

Super Petrol, Diesel and Kerosene will retail at KSh 194.68, KSh 179.67 and KSh 169.48 effective midnight in Nairobi," said EPRA

In the statement, EPRA retained fuel prices while re-introducing the subsidy component, which President William Ruto's administration had abandoned during the May review.

According to EPRA, introducing the subsidy component was meant to cushion Kenyans from the spike in fuel prices because of the increase in landing cost.

"In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilise pump prices for the August-September 2023 pricing cycle," it stated.

In the new arrangement, the government will compensate the Oil Marketing Companies (OMCs) for them to keep the prices of fuel low.

If subsidies were not applied, petrol, diesel and kerosene prices would have increased by KSh 7.33, KSh 3.59 and KSh 5.74 per litre, respectively.

Why was Ruto against fuel subsidies?

The latest development comes despite President Ruto having rejected the call by Azimio la Umoja One Kenya Coalition Party to reinstate the maize and fuel subsidy programme.

The president said his government would not be forced to implement failed policies of the previous regime.

Kenya Kwanza Alliance said the consumption subsidy programme was to blame for the current economic issues the country is having.

"As a PG, we resist the attempts by the opposition to force or blackmail the government into implementing failed policies of the last regime that drove the country into an economic mess, including the corruption-ridden consumption subsidies, irresponsible borrowing and gross fiscal mismanagement through state capture," he said.