The regulations will give Mr Munyes powers to cut diesel prices and cushion motorists from sharp spikes in the cost of the product when crude oil crosses $50 per barrel.
The subsidy is supported by billions of shillings raised from consumers through the levy, which was increased to Sh5.40 a litre in July from Sh0.40.
Motorists will wait longer to get a subsidy on diesel due to delays by the Energy ministry to develop regulations that roll-out the fund that has raised at least Sh10 billion.
Mining and Petroleum Cabinet Secretary John Munyes told Parliament that the ministry needs at least one month to craft the regulations that will then be tabled before lawmakers for consideration.
Mr Munyes said the ministry would table the proposed regulations on the Petroleum Development Levy towards the end of this month, paving the way for consideration by Parliament.
Under the subsidy, motorists and businesses will not bear costs of diesel prices above $50 (Sh5,486) per barrel as the State races to protect Kenyans against the rise in global oil prices.
The delay comes even the price of diesel and petrol hit record highs of Sh107.66 and Sh122.81 per litre respectively hitting motorists, businesses and households that are grappling with depressed cash flows in the wake of the coronavirus economic fall-out.
“I have been promised by my team that the regulations on the levy will be ready in two weeks then I escalate the issue. Let us give it one month of the process, we are promising one month,” Mr Munyes told the Senate Energy Committee yesterday.
“We will fast-track and then have them, I commit to deliver them to Parliament by end of April.”
The public will then be invited to give their views on the proposed regulations in line with the law before they are returned to Parliament for debate and passing into law.
The regulations will give Mr Munyes powers to cut diesel prices and cushion motorists from sharp spikes in the cost of the product when crude oil crosses $50 per barrel.
The subsidy is supported by billions of shillings raised from consumers through the levy, which was increased to Sh5.40 a litre in July from Sh0.40, representing a 1,250 per cent rise.
The fund is meant to cushion consumers from volatility in fuel prices but has seen motorists lose out when paying the Sh5.40 for a litre at the pump.
Crude oil crossed the $50 per barrel in January and rose to $61.61 in February leading to the record rise in the cost of diesel and petrol.
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