Nairobi — Kenyans will have to dig deeper into their pockets to purchase fuel starting Thursday, as the new government commences the gradual removal of the fuel subsidy.

In the latest monthly review by the Energy and Petroleum Regulatory Authority (EPRA), the price of petrol is up by Sh20.18 to retail at Sh179.30 per litre in Nairobi.

A litre of diesel will retail at Sh165, a Sh25 increase while kerosene, mostly consumed by low income households has increased by Sh20 retailing at Sh147.94 per litre.

EPRA said that although the subsidy for petrol had been removed, a subsidy of Sh20.82/litre and Sh26.25/litre had been retained for diesel and kerosene respectively in order to cushion consumers from the high prices.

The prices are inclusive of the 8 per cent Value Added tax in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty for inflation as per Legal Notice No.194 of 2020.

During his inauguration President William Ruto said that he would face out subsidies on fuel and food, arguing that they are a huge burden to the government's budget and often lead to product shortages.