President William Ruto has said the government has implemented a series of interventions to stabilise rising fuel prices, as global oil market fluctuations continue to affect local pump prices.
“The government of Kenya has not stood by. We have undertaken several consequential interventions,” Ruto said.
The President said one of the key measures undertaken by the government was the use of the Petroleum Development Levy Fund to build strategic financial reserves aimed at cushioning consumers during periods of global market instability.
According to Ruto, the government utilised Sh13.7 billion in the last two fuel pricing cycles, covering the April-May and May-June periods, to stabilise fuel prices.
“To cushion consumers from the sharp rise of global oil prices, the government has used the fund to stabilise fuel prices,” he said.
Ruto further noted that the government, in collaboration with Parliament, reduced Value Added Tax (VAT) on petroleum products from 16 per cent to eight per cent to ease the burden on Kenyans.
He said the tax reduction has seen the government forgo billions in revenue in favour of protecting consumers and businesses from escalating costs. During the April-May pricing cycle alone, the government spent Sh6 billion on fuel stabilisation and gave up Sh6.41 billion in VAT revenue, bringing the total intervention for the period to Sh12.45 billion.
As a result of the measures, Ruto said prices of super petrol dropped by Sh19.67 per litre, diesel by Sh40.25, while kerosene reduced by Sh115 per litre. For the May-June cycle, the President said the government spent another Sh7.7 billion on fuel stabilisation and forewent Sh8 billion in VAT revenue.
“In total, the government spent Sh15.72 billion on stabilising fuel prices this month,” he said.
The interventions led to a reduction of super petrol prices by Sh15.87 per litre, diesel by Sh44.89, and kerosene by Sh78 per litre.
Ruto maintained that the measures were necessary to shield the economy from global oil price shocks and prevent further pressure on the cost of living.
He said the government remains committed to implementing policies that protect citizens while ensuring economic stability and sustainable growth.
