Ruto’s move to withdraw the Ksh280 billion on fuel subsidies has reduced the burden on the treasury which has been working tirelessly with aims of maintaining fuel prices during the retired President Uhuru Kenyatta’s tenure.
William Ruto slashed the amount spent on fuel subsidies from Ksh19 billion to Ksh4.3 billion in the latest petroleum products review announced by the Energy Petroleum and Regulatory Authority (EPRA) .
Ruto’s administration then used the money collected on accounts of the Petroleum Development Levy to compensate Oil Marketing Companies.
The move comes days after the commander in chief promised to do away with the fuel subsidies which he argued was unsustainable. Ruto had argued that the country’s economic stability could not be able to spend over Ksh280 billion on fuel subsidies.
The withdrawal of the subsidies saved Ksh14.7 billion from the initial Ksh19 billion that was spent on fuel subsidies. The move to withdraw the fuel subsidies resulted to a historic hike of fuel price across the country. In Nairobi, a litre of petrol is currently retailing at Sh179.30, while a litre of diesel going for Sh165.00.
During Uhuru’s tenure, his administration had promised to pump more money into the fuel subsidy, Uhuru’s administration revealed that their move would save consumers from spending more than Sh200 per litre on the three petroleum products.
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