Fuel price hits $1.5/litre as govt removes subsidy in Kenya

Fuel sells for 179 shillings, which is approximately $1.5 per litre in Kenya as Ruto’s government introduces partial subsidy removal.

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

During Ruto’s campaign he promised to remove fuel subsidies, which he acknowledged were protecting Kenyans from the rising global energy prices. He, however, associated the subsidies with rising government costs as they contributed largely to the rising debt-to-GDP ratio of the nation.

Ruto said Sunday that Kenya was “in a deep economic hole” and repeated his pledge to lower the cost of living as a priority upon taking office.

The International Monetary Fund (IMF) had asked the former government of Kenyatta that as a country to qualify for the $236 million loan, the country had to do away with the subsidies, especially the fuel subsidy.