Kenya fuel cost rises as subsidy removed

The cost of fuel in Kenya has risen to a new record high after the government partially removed subsidies that cushioned consumers from the global hike in oil prices.

The energy regulator said late on Wednesday night that it had removed the subsidy for super petrol, while retaining a smaller subsidy for diesel and kerosene.

“Although the subsidy for super petrol has been removed, a subsidy of Kshs.20.82/litre and Kshs.26.25/litre has been retained for diesel and kerosene respectively in order to cushion consumers from the otherwise high prices,” the energy and Petroleum Regulatory Authority (Epra) said in a statement.

In the new prices, super petrol – mostly used by private motorists – will now cost about 180 shillings ($1.5; £1.3), while diesel, which is used in industries will cost 165 shillings in the capital, Nairobi.

Kerosene, which is mainly used by low-income households for cooking and lighting, will cost about 148 shillings.

It comes after President William Ruto indicated in his inaugural speech that his administration would do away with fuel and food subsidies, noting that they were costly and ineffective.

But there were concerns that a complete removal of the subsidies would hit the economy hard as the fuel prices directly affect the cost of living.