Petrol prices up by KSh20 a litre as fuel subsidies end
The price of petrol has shot up by KSh20.18 per litre in the latest monthly fuel review by the Energy and Petroleum Regulatory Authority.
A litre of the unleaded product is now retailing at Sh179.30, up from about KSh159. At the same time, price of diesel has been listed as Sh165 per litre in Nairobi (up by KSh25) and Kerosene at KSh147.94 (up by KSh20).
However, EPRA says a subsidy of KSh20.82 per litre and KSh26.25/litre for diesel and kerosene, respectively had been retained in order to cushion consumers from high prices.
The new prices are the outcome of a new pricing regime instituted by the administration of newly-installed President William Ruto, whereby subsidies have been done away with.
In his inauguration speech on Tuesday September 13, President Ruto vowed to do away with the subsidies.
"On fuel subsidy alone, the taxpayers have spent a total of KSh144 billion, a whooping KSh 60 billion in the last 4 months. If the subsidy continues to the end of the financial year, it will cost the taxpayer KSh 280 billion, equivalent to the entire national government development budget," he said.
The new prices are inclusive of 8 per cent Value Added Tax.
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