Motorists are set to enjoy lower prices at the pump after the National Assembly Committee of Delegated Legislation approved a fuel subsidy program on Wednesday, March 17.
The Petroleum Development Levy Order, 2020 will now need the approval of the whole house to allow motorists to get relief from the subsidy.
The regulations give the Petroleum CS powers to lower the price of fuel and cushion Kenyan against sharp spikes.
However, the legislation only allows for the subsidy of diesel under the scheme that excluded petrol.
The program will be facilitated through the Petroleum Development Levy which was increased to Ksh 5.40 per litre from Ksh 0.4 in July 2020.
As of February 2021, the fund had collected more than Ksh 12 billion in seven months.
The Energy and Petroleum Regulatory Authority says the current pricing formula has on many occasions seen consumers pay a high cost for fuel imported several months ago even when global prices are lower.
In EPRA’s latest fuel price list, petrol is selling at a high of Ksh 122.81 which was last witnessed in November 2011. Diesel is retailing at Ksh 107.66 last witnessed in December 2018.
Following the price hikes, Kenyans have devised ways of saving by carpooling and by using public service vehicles which have also threatened to increase fares.
Other motorists have started applying hacks to improve the fuel economy of their cars to save on consumption.
The methods include improving the aerodynamics of the car while driving, cutting back on aggressive use of brakes and acceleration and maintaining correct tire pressure.
