Months after reiterating that his government will not subsidise fuel and food prices, President William Ruto seems to have abandoned the hardline stance.
Energy Petroleum and Regulatory Authority (EPRA) in its declaration of fuel prices for the month of August-Semptember has provided a fuel subsidy to cushion Kenyans.
While the prices were to be increased owing to market factors, that will not happen after Ruto's government opted to foot some costs.
ln a notice, EPRA said the price of petrol which was to retail for Sh202.01 will now retail at Sh194.68 representing a subsidy of Sh7.33.
The price of diesel which was to retail at Sh183.26 will now retail at Sh179.67 representing a subsidy of Sh3.59.
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For Kerosene, the price will retail at Sh169.48 after the government subsidized it from Sh175.22 that it was supposed to be sold. This represents a subsidy of Sh5.75.
"To cushion consumers from the spike in pump prices as a consequence of increased landed costs, the government has opted to stabilise pump prices for the August-September 2023 pricing circle. Oil marketing companies will be compensated from the Petroleum Development Fund," EPRA Director General Daniel Kiptoo Bargoria said.
The move now means fuel prices will remain unchanged.
"In the period under review, the maximum allowable petroleum pump prices for super, diesel and kerosene remain unchanged," he said.
The last time government subsidised all three fuel commodities was exactly a year ago during the August-September, 2022 fuel review.
