The Independent Media and Policy Initiative (IMPI) rejects claims that the Federal Government's 30-day fuel price modulation plan is a return to subsidy, arguing it differs fundamentally from the production subsidy proposed by former Vice President Atiku Abubakar. According to IMPI, the NNPCL discount means the national oil company forgoes retail margins to sell petrol at landing cost, and the proposed N1,350-per-litre ceiling is a price-smoothing tool reviewed every 30 days, not a permanent control or a budget-funded compensation scheme. Atiku's model would provide a budgeted production subsidy to refinery owners, which IMPI warns could impose heavy fiscal costs on the Federation Account. IMPI chairman Dr Omoniyi Akinsiju also warned that forcing oil companies to sell equity crude at government-mandated discounts could trigger contract disputes and discourage investment.
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The People's Party of Kenya, led by Kiharu MP Ndindi Nyoro, proposes cutting fuel prices by Sh29 per litre, to Sh197.96 for petrol and Sh198.77 for diesel, after EPRA's monthly increases for the October 15 to November 14, 2026 cycle. To do so, it suggests a Sh5.5 billion subsidy worth Sh12 per litre, trimming importer and distributor margins by Sh10 per litre, and scrapping the Sh7 fuel levy introduced in 2024. The party says diesel's landed cost fell 17 per cent, from Sh167 per litre in May to Sh138.21, and importers' margins rose 12 per cent, yet pump prices kept rising, which it criticises amid 6.8 per cent inflation. EPRA cites higher international refined-product costs and increased petrol landed costs, while Nairobi prices now stand at Sh226.96 for petrol and Sh227.76 for diesel.
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