Nairobi, Kenya – The government of Kenya has argued that fuel prices would have hit KSh 300 per litre if it had not reduced VAT and utilised the petroleum stabilisation fund.
This followed the nationwide strike organised by the Matatu Owners Association and players in the transport sector on Monday, May 18.
In a statement seen by News Nine, Kindiki explained that apart from the reduction of VAT from 16% to 8% and utilisation of KSh 12 billion fuel stabilisation fund, the government is considering additional measures to lower the prices.
The DP revealed that President William Ruto ordered an interministerial engagement with the Treasury, the Ministry of Energy, Transport, Interior and key stakeholders to discuss additional measures for reduced pump prices.
“The goverment has already reduced VAT on fuel from 16% to 8%, while 12 billion shillings from the fuel stabilisation fund have been applied to manage prices, otherwise the prices would have shot to 300 shillings per litre by now.
“President William Ruto has ordered an interministerial engagement of Cabinet Secretaries responsible for the National Treasury, Energy, Transport and Interior to engage with stakeholders to see what additional measures are necessary, and to make sure normalcy in the transport sector returns as soon as possible,” said Kindiki.
What are the new pump prices
Meanwhile, The government announced plans to bridge the gap between diesel and petrol prices.
Speaking after a meeting with industry stakeholders, Transport CS Opiyo Wandayi said the discussions have agreed to reduce diesel prices and increase kerosene prices.
The Energy and Petroleum Regulatory Authority (EPRA) gazetted the new pump prices after CS Wandayi’s statement, cutting diesel prices by KSh 10.06 and increasing kerosene prices by KSh 38.6 per litre.
The regulator revised the price per litre of diesel from KSh 242.92 to KSh 232.86 and kerosene from KSh 152.78 to KSh 191.38.
The prices of super petrol remained unchanged at KSh 214.25 per litre.
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