Fuel prices hit record high as subsidy removed in Kenya

(FILES) In a file picture taken on February 28, 2012 a motorist fill up at the gas pump in a gas station of the French northern city of Lille. The G7 industrial countries called on August 28, 2012 on oil producers to increase output, saying higher prices posed “substantial risks” to the global economy. Under acute political pressure in France to reduce petrol prices at the pump, France’s Finance Minister Pierre Moscovici earlier announced the government would spend 300 million euros ($375 million) to temporarily cut pump prices for motorists. AFP PHOTO / PHILIPPE HUGUENPHILIPPE HUGUEN/AFP/GettyImages ORG XMIT: –

Fuel prices have risen once again in Kenya 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.

At the new prices, super petrol – mostly used by private motorists – will now cost about 179 shillings ($1.5) a litre, up from 1.3 dollars while diesel, which is used by transporters and industries will cost about 1.4 dollars in the capital, Nairobi.

Kerosene, which is mainly used by low-income households for cooking and lighting, will cost about 1.2 dollars a litre.

It comes after President William Ruto called fuel and food subsidies “costly and ineffective”, in his inaugural speech, Tuesday.

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 East African political and economic powerhouse is reeling from a once-in-a-generation drought and inflation is at five-year highs. In June, the World Bank projected Kenya’s (GDP) would grow by 5.5 percent in 2022, a moderation following last’s year recovery when the country’s economy grew by 7.5 percent.

Africanews.

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