African Country Reintroduces Fuel Subsidy After Nationwide Protests
Afimag.com –
The Kenyan government has put back a small subsidy in a bid to harness retail fuel prices for the next 30 days after a violent protests erupted in the country.
The country’s Energy and Petroleum Regulatory Authority, EPRA, disclosed this on August 14, 2023.
It was gathered that the action was to amend government’s policies and programmes that have made life miserable for the people.
It was further gathered that President William Ruto, withdrew fuel and maize flour subsidies initiated by his predecessor after assuming office last September.
Though, Ruto had told his people that it is better to subsidize production than for consumption to be subsidized.
The action was also projected at reducing government spending as it seeks to get a handle on debt repayments that have forced it to deny market speculation about a possible default.
Meanwhile, the subsidy cuts as well as recent tax hikes have increased living costs and contributed to violent anti-government protests in recent months.
The energy regulator said the maximum retail price of a litre of petrol would remain constant at 194.68 shillings ($1.35), shielding consumers from an increase of 7.33 shillings, which the government will shoulder through a price stabilisation fund.
Retail fuel prices are set in the middle of each month and Kenya’s government also applied small subsidies on kerosene and diesel, according to EPRA.
According to Reuters ERPA did not provide an explanation for the government’s decision as officials from EPRA, the energy ministry, and the finance ministry did not immediately respond to requests for comment.
Fuel prices shot up when Ruto removed the subsidies. They spiked again in July after the government pushed through parliament a contentious law that doubled the fuel tax.
The protests organised in response to that law were called off last month after the opposition and Ruto agreed to talks to resolve their differences, the second such attempt this year.