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                              Ruto Clarifies Return of Fuel Subsidy

                              President William Ruro denied the return of fuel subsidy stating utilization of Petroleum Development Levy

                              Levi Onyinkwa by Levi Onyinkwa
                              August 16, 2023
                              Fuel Subsidy Not Back, Says President Ruto

                              President William Ruto. PHOTO/PCS.

                              President William Ruto on Wednesday, August 16 sought to clarify reports that the government had reinstated the fuel subsidy. 

                              Speaking at the 8th devolution conference in Uasin Gishu County, President Ruto told off those insinuating that his regime had silently brought back the fuel subsidy.

                              Ruto emphasized his government’s aim to subsidize production and not consumption as it was done in the previous regime.

                              ”Let me tell the country, we will not go to subsidies of any nature that distorted things and causes us unnecessary leakage,” he said.

                              Moreover, Ruto added that the government was utilizing the Petroleum Development Levy provided in the constitution to foster development and stabilize the economy in challenging economic times.

                              President Ruto has clarified that has denied claims of the return of fuel subsidy. He said the government is utilizing the Petroleum Development Levy.
                              President Willliam Ruto addressing at the 8th Devolution Conference in Uasin Gishu. PHOTO/PCS

                              Also Read: Mandago Arrested After Ruto Order


                              ”We are making prudent and proper use of the Petroleum Development Levy that is provided for in the law. It is meant to develop the petroleum industry, and it is meant to stabilize prices whenever we have unintended hikes,” said Ruto

                              How Ruto fought fuel subsidy

                              The Kenya Kwanza government under the leadership of President Ruto scrapped the subsidy on fuel and petroleum products.

                              Ruto explained that subsidies on consumption were unsustainable, and they will have a long run effect on the economy.

                              Ruto emphasized subsidizing production especially in the agriculture sector and reducing levy on petroleum products.

                              “On fuel subsidy alone, the taxpayers have spent a total of Ksh144 billion, a whopping Sh60 billion in the last four months. If the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh280 billion, equivalent to the entire national government development budget,” Ruto noted on his inauguration day. 

                              EPRA, it’s stabilizer not subsidy

                              Earlier, The Energy and Petroleum Regulatory Authority denied reports that the government had returned the fuel subsidy.

                              According to EPRA Director General Daniel Kiptoo, the state used the Petroleum Development Levy as compensation to stabilize prices.

                              President Ruto has clarified that has denied claims of the return of fuel subsidy. He said the government is utilizing the Petroleum Development Levy.
                              Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo. PHOTO/Courtesy

                              Daniel Kiptoo said that the holding of pump prices is in line with the policy pronouncements of the Kenya Kwanza Government.

                              “What has been applied is stabilization not subsidy. The petroleum development levy was put in place to amongst other things cushion Kenyans from spikes in petroleum pump prices,” said Kiptoo.


                              Also Read: Ruto Brings Back Fuel Subsidy as EPRA Announces Pump Prices


                              He further said that the funds used in stabilization were not funded by the exchequer unlike in the previous administration that made it a subsidy.

                              “We have not applied 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.

                              On August 14, EPRA did not adjust pump prices saying the government had taken steps to cushion consumers.

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

                              Oil Marketing Companies (OMCs) will be compensated from the Petroleum Development Fund (PDF),” stated EPRA.

                              Tags: FuelPetroleumRutoSubsidy

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                              Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
                              Functional
                              Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
                              Performance
                              Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
                              Analytics
                              Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
                              Advertisement
                              Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
                              Others
                              Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
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