Kenya: Govt Introduces Subsidies On Fuel to Cushion Customers

Capital FM
Cost-of-living protest (file photo).
15 August 2023
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — The government has introduced subsidies on fuel prices to cushion customers from the high prices of the commodities.

The Energy and Petroleum Regulatory Authority (EPRA) announced yesterday that it will compensate oil marketers for Sh7.33 for super, Sh3.59 for diesel, and Sh5.74 for kerosene using the Petroleum Development Fund (PDF).

Without compensation, a liter of petrol would have increased to Sh202.10 today from Sh194.68.

Diesel would have also gone up to Sh183.26 and Sh175.22 for kerosene.

"In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilize pump prices for the August-September 2023 pricing cycle," read a statement by EPRA.

"Oil marketing firms will be compensated from the Petroleum Development Fund (PDF)," added the statement.

Only in May did President William Ruto's regime end the fuel subsidy programme as part of an agreement with the International Monetary Fund.

It followed a Sh3.40, Sh6.40, and Sh15.19 rise in super, diesel, and kerosene costs.

Starting in July as well, prices of commodities went up on the increase in value-added tax (VAT) on fuels from 8 percent to 16 percent.

"The interventions in place have not borne any fruit. On fuel subsidy alone, the taxpayers have spent a total of Sh144 billion, a whopping Ksh 60 billion in the last 4 months," Ruto said earlier.

Read the original article on Capital FM.

Tagged:
Copyright © 2023 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.