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President Ruto Speaks Ahead Of Fuel Prices Announcement

SK 2 years ago 1 min read

Because they were unsustainable, according to President William Ruto, consumer subsidies will expire.

Ruto made the comments during his inaugural speech, which led many Kenyans to believe that petrol prices will soon rise.

The negative impacts of the subsidy on the exchequer are further highlighted by the fact that Kenya has spent an average of Sh9 billion on diesel, super fuel, and kerosene subsidies since April of last year.

“On fuel subsidy alone, the taxpayers have spent a total of Shh144 billion, a whopping Sh60 billion in the last four months. If the subsidy continues to the end of the financial year, it will cost the taxpayer Sh280 billion, equivalent to the entire national government development budget,” the president noted.

“Additionally, there was an attempt to subsidise unga [maize flour] in the run-up to the election, a programme that gobbled up Sh7 billion in one month, with no impact,” he added.

The Energy and Petroleum Regulatory Authority will present new monthly prices for the period ending October 14 today (EPRA).

Without the subsidies for the current monthly pricing cycle, drivers would have paid historic highs of Sh214.03 per litre of super gasoline and Sh206.17 for diesel.

In order to reduce the cost of living and abolish the fuel subsidy, President Ruto must strike a difficult balance.

Due to rising pump prices, fuel inflation was the main factor driving overall consumer price rises in Kenya during the last year.