Fuel prices will continue to fall despite road levy hike – Ruto
President William Ruto on Monday explained the rationale behind the Energy and Petroleum Regulatory Authority’s (Epra) decision to increase the road maintenance levy from Sh18 to Sh25.
A drop in landed costs and the application of the fuel stabilisation allowed the energy regulator to increase the road levy by Sh7 per litre, without hiking pump prices.
Speaking on Monday during the laying of the foundation stone for the Keringet ESP Market, Nakuru County, President Ruto said the fund will avail more resources necessary for road repairs.
“We have more money from the fuel levy so we can work on roads where construction has stopped and on damaged roads plagued with potholes so that traffic can flow smoothly,” he said.
The pricing schedule released last night shows that consumers will now pay the road maintenance levy at a new rate of Sh25 per litre of petrol and diesel from Sh18.
Despite the increment of the levy, pump prices dropped to Sh168.50 per litre of diesel from Sh173.10 while that of petrol dropped to Sh188.84 from Sh189.84 in Nairobi.
“We have made sure that the levy does not add more pain to Kenyans and that prices at the pump continue to go down…whatever we do to find resources to repair roads, it should not mean that Kenyans have to pay more money,” President Ruto said.
Epra bowed to pressure from the Ministry of Roads and Transport to hike the levy despite promises by immediate former Roads CS Kipchumba Murkomen saying the State will delay plans to hike the levy.
Epra applied a subsidy of Sh3.35 and Sh2.50 per litre of petrol and diesel to cushion consumers from what would have been a rise in fuel prices.
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