New details have emerged indicating how the government swung into action to save Kenyans from another fuel price increase by the Energy Petroleum Regulatory Authority (EPRA).
Media reports indicate that EPRA was set to announce another fuel price increase where Super petrol would go up by Sh4.30 to Sh127.11 per litre in Nairobi and diesel from Sh107.66 to Sh109.96, but the government intervened.
Influenced by reports of looming tension should EPRA have reviewed the price upwards, several government agencies including Ministry of Energy, Treasury and EPRA were locked up in a long night meeting to review the fuel prices.
After a series of meetings, the team agreed to maintain the current fuel prices, with the government promising to compensate oil marketers.
“We made a late decision to cut the suppliers’ margin and offer millions of motorists a relief. This was more of a political decision than an economic one because public anger has been mounting,” an official privy to the meeting said.
This is the first time the government has maintained the same fuel prices sinsce it began regulating the sector in 2010.
Following the Wednesday announcement, petrol will continue retailing at Sh122.81 in Nairobi, diesel at 107.66 and kerosene at 97.85.
"In the period under review, the prices for Super petrol, Diesel and Kerosene remain unchanged from March 2021 pump price.
"The prices are inclusive of the 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” EPRA said in a statement on Wednesday.