Starting Thursday, Kenyans will have to battle high fuel prices as the new administration begins to phase off the fuel subsidy. Fuel prices in Kenya have reached a new high after the government partially eliminated subsidies that protected customers from the global spike in oil costs.

According to the Energy and Petroleum Regulatory Authority’s (EPRA) most recent monthly review, the price of petrol in Nairobi has risen by Sh20.18 to Sh179.30 per litre.

Super fuel, which is usually used by individual motorists, would now cost around 179 shillings ($1.5; £1.3) per litre, up from 160 shillings, while diesel, which is mostly used by transporters and industries, will cost 165 shillings in Nairobi.

What’s more
Although the subsidy for petrol had been eliminated, EPRA stated that a subsidy of Sh20.82/litre and Sh26.25/litre for diesel and kerosene had been kept to cushion customers from the high prices.

Why is this happening?
It comes after President William Ruto stated in his inaugural address that his administration will eliminate gasoline and food subsidies since they were both costly and useless.

However, there were concerns that completely eliminating the subsidies would have a negative impact on the economy because gasoline prices directly affect the cost of living.

On the global scene
Nigeria goes to the polls next year and subsidies are a front burner on the campaign page. Kenya’s action may give it a stronger push

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