The government of the Republic of Kenya led by President William Ruto has reinstated fuel subsidies on petrol and other products, signalling a major policy reversal.
The development comes after several months of protests by the people over the burden of high living costs.
The decision is aimed at cushioning the effect of the soaring pump prices on the consumers.
The Energy and Petroleum Regulatory Authority (EPRA), Kenya’s energy regulator, said oil marketing companies will be compensated from the Petroleum Development Fund.
EPRA said the maximum retail price of a litre of petrol would remain constant at 194.68 shillings ($1.35) for the next month, shielding consumers from an increase of 7.33 shillings ($0.05).
EPRA’s statement noted, “In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilise pump prices for the August-September pricing cycle.”
“Under the reintroduced subsidies, petrol prices remain unchanged at Ksh194.68 ($1.35) per litre, diesel holds at Ksh179.67 ($1.25) per litre, and kerosene stands at Ksh169.48 ($1.18) per litre.
