Kenya: Fuel prices increases after subsidy removal

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Fuel prices, especially for petrol and diesel have increased to the highest level in Kenya’s history after the State discontinued a subsidy scheme introduced in April to ease public outrage over the high cost of living.

The energy regulator — Energy and Petroleum Regulatory Authority (EPRA) — removed subsidies of Sh7.10 on petrol, Sh9.90 on diesel and Sh11.36 on kerosene that applied on the prices of fuel sold in the month to September 14.

This increased the price of petrol by Sh7.58 a litre in Nairobi to Sh134.72 while diesel has jumped Sh7.94 to Sh115.6 a litre — the highest in Kenya’s history.

The State has since March offered consumers of diesel and kerosene a subsidy, with those using petrol enjoying the benefit with the exemption of the May review.

This saw the regulator keep diesel and kerosene prices unchanged since April at Sh107.66 and Sh97.85 a litre respectively on fears an upward review could fuel public anger. Petrol had remained unchanged at Sh127.14 since June.

Expensive fuel could unleash pricing pressure across the economy and have ramifications on the cost of living measure.

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