As fuel prices continue surging across the continent, Kenya’s outgoing President Uhuru Kenyatta has rolled out a fresh round of fuel subsidies worth Ksh16.67 billion in a bid to curb the rising prices at the fuel stations.
The Energy and Petroleum Authority had since announced to raise fuel prices after the Treasury announced that it would be withdrawing the fuel subsidy to ease pressure on government coffers.
Mr. Yatani, the Treasury Cabinet Secretary had said in June that the continuation of the subsidy could endanger Kenya’s plans to cut debt accumulation prompting the push to remove it gradually within the current financial year.
President Uhuru announced that as a caring government, they would continue to roll out similar actions to provide further direct relief to all Kenyan families and establish the necessary safeguards for protecting Kenyan consumers from further increases in the cost of living since fuel price hikes affect other essential goods.
As of July, a litre of petrol will remain at Ksh159.12 per litre, Diesel will remain at Ksh140 per litre and Kerosene will continue retailing at Ksh127.94.
While the cost of fuel is determined by things such as landing costs, taxes that include excise duty, road maintenance, petroleum development, petroleum regulatory , railway development, anti-adulteration levy, merchant shipping levy, import declaration fee, and value-added tax imposed on the products push the retail price to nearly double.
Since February 2022, the cost of fuel has been on a steady increase and Kenya has over the past months spent over $860m to subsidize fuel in the face of rising prices in the global market.