Kenya: State Saves Sh5.40 For Fuel Consumed

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The Chairperson of the Petroleum Outlets Association Martin Chomba has said for every litre of Super and Petroleum products that Kenyans consume, the government sets aside Sh5.40.

In an interview with a local station, Chomba said the money is reserved for use in fuel price stabilisation and subsidisation.

“By every litre of Super and Diesel you consume in this country, the government stores Sh5.40. That money is saved somewhere,” Chomba said.

“The minute they introduce stabilization, that money is available for that. The subsidy is given to the oil marketers.”

Additionally, Chomba said while fuel price stabilisation keeps the petroleum outlets running, subsidisation keeps them out.

The POA chairperson said the Energy and Petroleum Regulatory Authority (EPRA) capping the wholesale fuel prices leaves most of them with losses.

“Stabilization is okay, but subsidy becomes a problem because it comes with a wholesale cap. Petroleum outlets do not get their value within the value chain leaving most of them to close down,” he said.

“When you introduce subsidy at the retail that distorts the markets system.”