× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Fuel kitty saves motorists from high pump costs

By Macharia Kamau | Jan 15th 2022 | 2 min read
By Macharia Kamau | January 15th 2022
It is the fourth month in a row that pump prices have remained at the same level. [File, Standard]

Motorists have been spared a record rise in fuel pump prices for the next one month despite an increase in the cost of crude oil in the international markets.

The Energy and Petroleum Regulatory Authority (Epra) in its monthly pricing guide yesterday said prices will remain unchanged as the government taps into the Petroleum Development Levy to cushion Kenyans from high prices.

The petroleum stabilisation mechanism is now proving a critical component in the pricing of fuel, without which motorists would have this morning bought a litre of super petrol at an all-time high of Sh144.47 in Nairobi.

But the application of the subsidy now means super petrol will continue to retail at Sh129.72 per litre in the capital, Sh14.75 lower than what could have been the actual cost.

A litre of diesel, on the other hand, will remain at Sh110.60 and kerosene at Sh103.54 in Nairobi.

It is the fourth month in a row that pump prices have remained at the same level.

“In the period under review, the pump prices of super petrol, diesel and kerosene remain unchanged,” said Epra Director-General Daniel Kiptoo in a statement announcing maximum prices for the January-February pricing cycle.

“The government will utilise the Petroleum Development Levy to cushion consumers from the otherwise high prices.”

In the absence of the subsidy, diesel would have gone up to Sh128.44, which is Sh17.84 more than the current prices, while kerosene would have gone up by Sh20 at Sh123.77 per litre.

Implementation of the fuel subsidy began last year, albeit in an on and off manner.

It had been suspended in September and resulted in super petrol prices reaching Sh134 per litre but was reinstated in October.

The subsidy draws from the Petroleum Development Levy Fund, a kitty where motorists contribute Sh5.40 for every litre of petrol and diesel they consume, netting billions of shillings every month. The money has in recent months been used to cushion Kenyans from the high cost of fuel, with the government cutting the oil marketing companies’ margins.  

Share this story
Once forgotten, sweet potato is now hot cake
The popular sweet potato is well known for its great source of fibre, vitamins and minerals such as beta-carotene that acts as powerful anti-oxidants.
Kenya Power stripped of role of managing national grid
Ketraco to play role of system operator, including the selection of electricity suppliers.