As fuel prices reach historic levels in Kenya, the government has committed to stepping in and providing subsidies to marketers who have had to sell at market prices. The volatility in the global market has driven the retail price of fuel to 144.62 Kenyan shillings per litre and diesel at 125.5 shillings per litre. Unsurprisingly, this had led to scarcity and queues at filling stations across the country.
To assuage this issue, the government has announced that oil marketers in Kenya will receive a total compensation of 9.2 billion shillings, representing a subsidy of 40.24 shillings per litre of diesel, 5.057 billion shillings – 29.08 shillings per litre on petrol and a total 310.87 million shillings for kerosene.
According to the country’s Energy Cabinet Secretary Monicah Juma, the country will continue to ensure that the fuel price is stabilized and Kenyans are able to carry out their businesses and everyday activities with the least of hassles. “The government will continue with the fuel stabilisation so as to ensure that Kenya remains by far the cheapest country in East Africa and within sub-Saharan Africa,” she said on Thursday.
The subsidy is supported by the Petroleum Development Levy which was increased to Sh5.40 a litre of petrol and diesel from Sh0.40 in 2020. A total of Sh8.2 billion to marketers to ease their cash crunch.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.