Business

Govt announces Ksh16B fuel subsidy ahead of EPRA review

Thursday, July 14th, 2022 14:32 | By
Oil marketers await Sh60b subsidy cash
Fuel pump used for illustration. PHOTO/Internet.

The government has announced a Ksh16.7 billion fuel subsidy ahead of the monthly review by the Energy and Petroleum Regulatory Authority (EPRA) which was expected to hike the prices further.

In a statement on Thursday, July 14, 2022, Statehouse Spokesperson Kanze Dena said that the fuel subsidy will ensure that the prices do not hike, consequently hiking the cost of living.

"It is notified that His Excellency the President has today authorized an additional fuel subsidy of Ksh16.675 billion, so as to cushion Kenyans from a further increase in fuel prices. With today’s presidential action, diesel will continue to retail at Ksh140.00, petrol at Ksh159.12 and Kerosine at Ksh127.94," Ms Dena said.

Prices without fuel subsidy

Without the intervention, it was expected that the pump prices would have hit Ksh193.64 for diesel, Ksh209.95 for petrol and Ksh181.13 for Kerosene.

"As a caring Government, we will continue to roll out similar actions so as 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," she added.

Dena revealed that fuel stabilization the government has spent at least Ksh101.9 billion on the programme in the last one year, which has offered a reprieve to Kenyans at the pump.The programme, Dena said, has ensured that Kenya's fuel prices remain the most affordable in the East and Central Africa region.

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