EPRA:Petroleum Development Levy is not a subsidy

By Robert Mutasi 

Energy and Petroleum Regulatory Authority(EPRA) CEO Daniel Kiptoo has clarified that the Petroleum Development Levy has been deployed as a measure to maintain steady fuel prices, aligning with the policy directives of the Kenya Kwanza Administration. 

Kiptoo emphasized that this action should be seen as a stabilizing mechanism rather than a subsidy, explaining that the levy was primarily established to shield Kenyan citizens from sudden increases in fuel prices.

Kiptoo further clarified that the Petroleum Development Levy serves as a contingency reserve, and its use did not involve any allocation from public resources. 

"There's no subsidy involved as we're essentially returning what we've previously collected from the Kenyan people," he affirmed.

He further distanced the current administration's approach from past practices, where public funds were used to cushion fuel prices, thereby creating a subsidy.

According to Kiptoo, the current measures are entirely funded by the levy collections and do not require any support from the exchequer, unlike the previous administration.

Kiptoo further reiterated that this compensation is legally established as a stabilization fund.

  "This isn't a subsidy. As per the Kenya Kwanza manifesto, we pledged to safeguard this fund to mitigate any sudden surge in fuel prices on days like today," he admitted.