The Energy and Petroleum Regulatory Authority has denied the return of fuel subsidy even as it moves to tap into the Petroleum Development Levy to compensate Oil Marketing Companies.
EPRA said the government has not returned to fuel subsidies but has instead opted for fuel stabilisation through the Petroleum Development Levy.
Consumers pay Sh5.40 per litre of petrol and diesel, and Sh0.40 per litre of kerosene as PDL, which is among nine other taxes imposed on fuel products.
"Government has not returned to fuel subsidies; it has returned to fuel stabilisation through the Petroleum Development Levy- for every litre of petrol a motorist buys, a fraction goes to the PDL for stabilisation. This fund was being misused by the Handshake government," it said.
This is for the August-September fuel cycle where pump prices have remained unchanged, despite a higher import bill in the wake of rising global prices.
A litre of petrol will continue retailing at Sh194.68 in Nairobi, diesel remains at Sh179.67 while kerosene will continue to retail at Sh169.48 per litre.
The prices would have gone up to Sh202.01 for Super petrol, and Sh183.26 for diesel while kerosene would have retailed at Sh175.22 per litre.
"The holding of pump prices today is consistent with the policy pronouncements of the Kenya Kwanza administration. One that has been applied is stabilisation, not a subsidy," they said in a statement.
