BREAKING: Nigeria Next? – Kenya Government Announces Reintroduction Of Fuel Subsidy (DETAILS)

BREAKING: Nigeria Next? – Kenya Government Announces Reintroduction Of Fuel Subsidy (DETAILS)

Kenya has reversed its government policy by reinstating a minor subsidy to stabilize retail fuel prices for the next 30 days, according to the energy regulator…CONTINUE READING

This decision comes after public outcry over the high cost of living in the country.

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Upon assuming office in September, President William Ruto eliminated subsidies on fuel and maize flour that had been implemented by his predecessor. Ruto stated a preference for subsidizing production rather than consumption, aiming to cut government spending and manage debt repayments that had sparked concerns of a potential default.

However, these subsidy cuts and recent tax hikes have led to higher living expenses and triggered violent anti-government protests in recent months.

The Energy and Petroleum Regulatory Authority (EPRA) announced that the maximum retail price for a liter of petrol would remain unchanged at 194.68 Kenyan shillings ($1.35), shielding consumers from a 7.33 Kenyan shillings ($0.05) increase, which the government will cover through a price stabilization fund. EPRA also indicated that small subsidies would be applied to kerosene and diesel.

The reasoning behind the government’s decision was not provided by the regulator. Requests for comment from EPRA, the Ministry of Energy, and the National Treasury and Economic Planning have yet to be answered.

The removal of subsidies by Ruto initially led to a surge in fuel prices. A further spike occurred in July following the government’s passage of a controversial law in parliament that doubled the fuel tax.

In response to this law, protests were organized, but they were called off after opposition leaders and Ruto agreed to engage in talks to address their differences.

Both sides agreed that their opposition to a financial bill signed into law in June would be resolved in court, as the opposition has challenged it.

An appeals court also lifted the suspension on a law to double value-added tax on fuel and introduce a new housing levy in July.

Nigeria

Nigerians will hope for similar reintroduction of fuel subsidy as citizens lament the rising cost of goods and services in the country.

President Bola Tinubu announced the removal of fuel subsidy in May making the price of fuel to rise.

There have been more than one increase in the fuel price since the removal of fuel subsidy was announced in Nigeria.