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The government has explained its stance on possibly using the Petroleum Development Levy (PDL) to help motorists if the ongoing conflict between Israel and Iran continues and affects the global oil supply.
Speaking to the media on Thursday, March 5, 2026, EPRA Director General Daniel Kiptoo stated that the stabilisation fund from the Petroleum Development Levy Act could be utilised to protect consumers from steep fuel price hikes if the Middle East conflict continues to impact the global supply chain.
Kiptoo said that the decision to use the stabilisation fund is made by the Cabinet Secretary for Energy, together with the National Treasury, not by the regulator.
“The applicability of the stabilisation fund in the Petroleum Development Levy Act is at the purview of the Cabinet Secretary. It would be at his discretion, in consultation with the National Treasury, to apply those funds,” he said.
Govt Clarifies Use of Fuel Levy if Israel–Iran Conflict Drags On
He noted that EPRA’s role is limited to computing fuel prices and advising policymakers, who then determine whether the levy should be used to stabilise pump prices.
Also Read: Govt Addresses Potential Fuel Price Hikes as Israel-Iran Tensions Disrupt Oil Markets
His remarks come as the government seeks to balance maintaining stable fuel prices with ensuring an adequate supply amid the escalating conflict in the Middle East.
The war has already disrupted parts of the global supply chain, with some facilities linked to suppliers under Kenya’s government-to-government (G2G) fuel import arrangement reportedly coming under attack.
Energy CS Addresses Potential Fuel Price Hikes
Despite the uncertainty, the regulator expressed confidence in the G2G framework, noting that Kenya continues to receive commitments from state-owned oil companies supplying fuel under the bilateral arrangement.
Also Read: EPRA Announces Fuel Prices for February-March Cycle
Kiptoo said national oil companies involved in the state-to-state agreements are unlikely to abandon their supply obligations despite the ongoing conflict.
“We have seen other commercial entities declare force majeure and others walk away from obligations, but government national oil companies are not likely to walk away from those commitments,” he said.
The Ministry of Energy had earlier assured the country that Kenya has sufficient fuel stocks to last until the end of April 2026 under the current supply plan.
The Energy Ministry stated that the government is closely monitoring developments while keeping contingency measures such as the fuel stabilisation fund on standby.
“We wish to assure the public and all stakeholders that the Ministry remains alert and shall continue taking necessary actions to ensure there is an uninterrupted supply. The Ministry undertakes to keep the country sufficiently updated,” said Energy CS Opiyo Wandayi.
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Energy CS Opiyo Wandayi. PHOTO/Ministry of Energy X
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