For the year beginning next month, fuel subsidies have been cut by 84%, or Sh26.7 billion, indicating pricey gasoline and a political issue for the next government.
In comparison to the Sh31. 7 billion used this year to maintain inflation within the government’ s chosen band, the fiscal year beginning in July will see a Sh5 billion allocation for the subsidy.
In a context where global crude prices are expected to conclude the year at $104 per barrel, the lower allocation paves the way for more expensive fuel.
The public’ s rising frustration with the high cost of necessities has contributed to inflation reaching a 27- month high, which will put pressure on the newly elected government following the August 9 elections.
As reported by the National Assembly’s Budget Committee, the Sh5 billion will be gone by September, prompting concerns about a price increase for diesel, super, and kerosene.
Kenyans generally have felt the squeeze since EPRA announced the new fuel rates. According to recent information from a credible source, William Ruto’ s government has saved a total of KSh 9. 4 Billion despite the dramatic increase in the cost of essential commodities. Caused by the elimination of the fuel subsidy, this occurred.
It’ s great that the Treasury was able to save 9. 4 billion Kenyan Shillings, but the average Mwananchi is the one who paid for it.
A number of Kenyans online have commented on NTV’ s official Facebook page in response to the recent revelations.
However, one response from a Facebook user named Carlton Jay particularly stood out to me. He claims that Kenyans will face severe financial hardships as a result of the government’s decision to end the fuel subsidy.
” Yes, it does save, but it leaves con artists vulnerable to huge price swings. Wow, I can’ t believe this. In addition to eliminating the fuel VAT, the subsidies should have been taken off progressively. My vote for this government has been punished, and I can’ t believe how stupid this administration is. ” According to what he said.
