Petrol users will continue feeling the pinch of high prices following a decision by the high court to dismiss an application seeking to challenge EPRA’s move cross-subsidizing the price of diesel with that of Petrol.
Cross-subsidization is when a marketer charges higher prices to a group of consumers in order to subsidise for another group.
In this case, it means petrol users pay a higher price so as to afford diesel users a lower price.
While delivering the judgement, Judge Olga Osewe sitting in Mombasa has cited public interest in the matter.
Petitioner Kelvin Itunga Ithangi had challenged the January 2023 decision arguing the Energy and Petroleum ministry had not conducted any public participation to inform the decision.
Ithangi also accused the Davis Chirchir led docket of failing to adhere to the principle of procedural fairness, accountability, credibility and transparency as enshrined in the constitution of Kenya under the fair administrative action act of 2015.
The Energy and pretroleum regulatory Authority (EPRA) and the Energy CS Davis Chirchir were designated as respondents
The government effected a sh25.13 subsidy per litre to cushion consumers from the otherwise high prices
Currently, In Nairobi, the price of petrol retails at Sh206.36, diesel at Sh 195.47 and Kerosene at Sh193.23 and is subject to monthly review.