Saturday, April 20, 2024

The government Introduces fuel subsidies to cushion customers from the high prices of the commodities

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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.

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“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.

Maryvine Moraa
Maryvine Moraa
MBA, Business Administration & Accounting. A Passionate IT Enthusiast.

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