President Ruto Refutes Media Claims on Fuel Subsidies

President William Ruto has unequivocally dismissed recent media reports suggesting that the government has reintroduced fuel subsidies.

His remarks come in the wake of the Energy Regulatory Authority’s (Epra) announcement on Monday that fuel prices would remain steady during the August-September period, despite an increase in imported fuel product costs.

“I want to clarify to the nation that we will not revert to any form of subsidies that distort the economic landscape and lead to unnecessary financial leakages,” President Ruto affirmed.

The recent fuel price review, conducted by Epra, indicated that the government opted to maintain fuel prices to shield Kenyan citizens from the surge in fuel costs.

Daniel Kiptoo, the Director General of Epra, revealed that oil marketers would be compensated for the difference through the Petroleum Development Levy (PDL). This compensation amounts to Sh7.33 per litre of super petrol, Sh3.59 per litre of diesel, and Sh5.74 per litre of kerosene.

Addressing the matter, President Ruto clarified that the compensation mechanism isn’t indicative of a subsidy; instead, it aligns with legal provisions aimed at fostering the development of the petroleum sector and mitigating price fluctuations during unintended spikes.

“We are responsibly implementing the Petroleum Development Levy, as enshrined in the law,” President Ruto asserted.

The President urged the media to acknowledge the government’s efforts in maintaining fuel price stability. He stressed that the tendency to focus on negativity hampers the recognition of positive strides achieved by the nation.

“This is a recurring issue in our country. The positive accomplishments that we achieve as a nation are often overshadowed by the negative narratives we perpetuate,” President Ruto remarked.

In a statement released on Tuesday, Kiptoo elaborated that the Petroleum Development Levy functions as a contingency fund for times of increased fuel prices.

He clarified that these funds aren’t subsidies in the conventional sense, as they don’t utilize public funds. Rather, they involve the return of funds collected from citizens in the past.

Kiptoo emphasized that this approach distinguishes itself from previous administrations, which relied on exchequer funds, thereby qualifying the previous measures as subsidies. In the current context, the utilization of collected funds ensures self-sufficiency within the system.