We Will Not Go Back To Uhuru Fuel Subsidies- Ruto Schools Nation Newspaper [VIDEO]

Ruto made it crystal clear that his government would not return to the fuel subsidy he had scrapped on September 15, 2022, two days after he took power.

We Will Not Go Back To Uhuru Fuel Subsidies- Ruto Schools Nation Newspaper [VIDEO]
Collage of President William Ruto and former President Uhuru Kenyatta alongside fuel pumps at a petrol station (inset). /VIRALTEAKE

President William Ruto on Wednesday, August 16 launched a surprise attack on the Nation newspaper regarding its report on reintroducing subsidies on fuel products.

Speaking during the Devolution Conference in Eldoret, Uasin Gishu County, Ruto made it crystal clear that his government would not return to the fuel subsidy he had scrapped on September 15, 2022, two days after he took power.

The Head of State went on to dress down the daily newspaper for misunderstanding the facts, explaining that the Kenya Kwanza government was only making the proper use of the Petroleum Development Levy provided for in the law.

"I saw some story in one of the dailies today which said we've gone back to subsidies on oil products, let me tell the country that we will not go back to subsidies of any nature that distorts things and causes us a lot of unnecessary leakage.

"If the Nation newspaper would bother to understand the facts, we are making prudent and proper use of the Petroleum Development Levy that is provided for in the law. It is meant to develop the petroleum industry, and it is meant to stabilise prices whenever we have unintended hikes," Ruto explained.

Ruto relentlessly accused the Nation of spreading negative vibes regarding his government and disintegrating the positive strides it made with its allies, adding that the local daily should borrow a leaf from an earlier address by US Ambassador to Kenya, Meg Whitman at the conference.

"Instead of the Nation commending us for using the Petroleum Development Levy as was provided for in the law, they have decided to be negative and that is how we suffer as a country. All the positive things that are made by our friends are destroyed by the very negative things that we say about our country.

"I hope that the Nation has learnt something from what Meg (Whitman) said and that they will stop this tirade against the people of Kenya and against the government...unless they have another country that they belong to. I'm told they are owned by some people who don't live in Kenya, maybe that's why they don't give a damn about what happens to our country," he slammed.

While revealing this month's fuel prices, EPRA outlined that the Petroleum Development Fund was reinstated to protect Kenyans from the high cost of fuel brought about by the doubling of the Value Added Tax (VAT) on fuel from 8 to 16 per cent.

The price for Super Petrol was calculated at Ksh202.01, Diesel at Ksh183.26, and Kerosene at Ksh175.22, without the fuel subsidy, thus the oil marketers were compensated Ksh7.33, Ksh3.59, and Ksh5.74 respectively.

EPRA would however reject the characterisation of the pump price intervention as a “subsidy”, preferring to describe it as a “compensation” to oil marketers as provided for in the Petroleum Development Levy Order of 2020.

It added that the Ksh7.33, Ksh3.59 and Ksh5.74 per litre of Super Petrol, Diesel and Kerosene respectively, meant to retain the pump prices as they are, will be paid from the Petroleum Development Fund (PDF) without any support from the National Treasury.

“About Ksh3.5 billion is available in the Petroleum Development Fund account. Only Sh1.8 billion will be used to stabilise petrol pump prices announced on August 15, 2023,” EPRA Director-General Daniel Kiptoo explained.

The regulator retained the fuel prices for the month between August 15 and September 14, from the previous month. Right now, Super Petrol, Diesel, and Kerosene retail at Ksh194.68, Ksh179.67, and Ksh169.48 in Nairobi.

"In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilize pump prices for the August-September 2023 pricing cycle," EPRA explained.

"Oil Marketing Companies will be compensated from the Petroleum Development Fund."

New fuel prices as announced by EPRA on August 14, 2023. /VIRALTEAKE