Our reporter/ Kenya has reinstated a small subsidy to stabilize retail fuel prices for the next 30 days in the country, even as president Bola Tinubu is considering the same measure to cushion the effects of hardship faced by Nigerians.
The development in Kenya comes following public anger over the high cost of living.
According to Jazeera reports, the Energy and Petroleum Regulatory Authority (EPRA), Kenya’s energy regulator, said oil marketing companies will be compensated from the Petroleum Development Fund.
The maximum retail price of a litre of petrol would remain constant at 194.68 shillings ($1.35) for the next month, shielding consumers from an increase of 7.33 shillings ($0.05).
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilise pump prices for the August-September 2023 pricing cycle. Oil Marketing Companies will be compensated from the Petroleum Development Fund,” the statement read in part.
After taking office in September, President William Ruto removed fuel and maize flour subsidies put in place by his predecessor.
Ruto said he preferred subsidizing production rather than consumption.
The move, he said, was also aimed at cutting government spending as the government seeks to get a handle on debt repayments that have forced it to deny market speculation about a possible default.
But the subsidy cuts as well as recent tax hikes increased living costs and contributed to violent anti-government protests in recent months.
-Tinubu under pressure to reinstate subsidy
Meanwhile, President Bola Tinubu is considering a “temporary subsidy” on petrol as crude oil prices and foreign exchange rates continue to soar.
According to TheCable report, There is yet no final decision, but presidency sources said the proposal is “firmly on the table” as Nigerians continue to groan under harsh economic realities following the removal of petrol subsidy in May 2023.
This is understood to be an option for Tinubu to keep the current prices, although private importers have not made a definite pronouncement on any possible adjustments.
But speculations around another increase in the pump price of petrol have caused tensions across the country, leading to panic buying in the early hours of Tuesday.
Already, labour unions have threatened to shut down the country indefinitely if the petrol price further increases.
The Nigerian National Petroleum Company (NNPC) Limited on Monday night said there are no plans to hike pump prices despite the rise in crude oil prices, landing cost, and fall in the value of the naira.
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