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Fuel prices jump in Kenya after subsidies cut
 
By: News Editor
Thu, 15 Sep 2022   ||   Kenya, Nairobi
 

Fuel prices in Kenya was greatly increased on Thursday after the new Government slashed subsidies, adding to the  misery of the population already fighting deep Economic hardship.
The Energy and Petroleum Regulatory Authority (EPRA) noted that the price of petrol increased from 20 shillings to 179.30 per litre while diesel and kerosene prices are up by 20 and 25 shillings respectively’
Shortly after William Ruto came to power  on Tuesday promising to scrap food and fuel subsidies a new price that will be in motion till Oct. 14th was announced.
Ruto in his inaugural speech said; “The interventions in place have not borne any fruit.’’
Meanwhile, the Country is struggling from the Global surge in crude oil prices and last year introduced measures to cushion consumers from the high retail prices.
According to the Government, It has spent 144 billion shillings about 86 percent of tourism earnings this year to subsidise fuel.
Ruto condemned the policies of his predecessor Uhuru Kenyatta, as they spent billions of shillings with no impact.
“In addition to being very costly, consumption subsidy interventions are prone to abuse, they distort markets and create uncertainty, including artificial shortages of the very products being subsidised.’’
With the new prices announced by EPRA, the subsidy for petrol has been removed while that of diesel and kerosene have been reduced.
Kenya has the most advance Economy in East Africa but many are suffering financial hardship with about more than half of the population living in abject poverty.
Coupled with prices for basic goods skyrocketing in the wake of Covid pandemic, the war in Ukraine and unemployment which had remained a major problem, particularly among the youths.
There are assertions that the new fuel price increases will make public service providers increase fares and further add to cost of living pressures.

 

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