Fuel prices have been on a steady rise worldwide since the attack of Russia on Ukraine on 24th February this year. The price of fuel has hit an all-time high after the government cancelled fuel subsidies on fuel causing the price of fuel to hit a new high for the first time.
The government has spent Sh144 billion on the fuel subsidy in the last year with Sh75 billion still owed to the oil marketers. If the subsidy had not been removed, Kenya was about to start facing severe fuel shortages.Moreover, the outgoing government of President Kenyatta had already promised the IMF that it would remove the fuel subsidy by October.
Ending the fuel subsidy will raise transport costs and increase the already high cost of living. But, the subsidy was unaffordable and unsustainable and doing away with it is a long-term measure to bring down the cost of living.
