Fuel prices Hike, Subsidies Withdrawn
The government on Sunday withdrew all subsidies on petroleum products meant to cushion Kenyans, a move that sets the stage for a spike in the cost of living.
This comes amid a looming debate on a Finance Bill 2023 which has proposed a further increase in the cost of fuel through higher value-added tax and is currently tabled at the national assembly.
According to the review by the Energy & Petroleum Regulatory Authority (EPRA), Kenyans will start paying higher prices for the three petroleum products effective Monday, May 15.
The cost of Super Petrol had increased by 8.63% in March 2023, Diesel decreased by 2.51% while Kerosene also dropped to 1.13%.
The new prices will now see Super Petrol, Diesel, and Kerosene increase by Kshs.3.40 per liter, Kshs.6.40 per liter, and Kshs.15.19 per liter respectively, a review which will be in force upto June 14, 2023.
In a statement on Sunday by EPRA's Director General, Daniel Bargoria, the increase is due to the average cost of imported refined petroleum products which has resulted in the varying prices in the cost of imports.
The subsidy had been started by former President Uhuru Kenyatta's regime in April 2021, however, the new regime vowed to scrap it claiming that it was disrupting the market.
Meanwhile, President William Ruto on Sunday during a joint media interview defended his government’s decision to increase VAT on petroleum products from eight percent to 16 percent.
According to the Head of State, the move is to seal loopholes rogue players use and give the government more revenue.
Tags: Epra Uhuru Kenyatta William Ruto Signstv Fuel Prices Vat Editor's Pick
