The Kenyan government has extended and increased a subsidy on road diesel for a month in order to shield consumers from rising costs.
The country's energy regulatory body Erpa said the move, which is effective until 14 December, will reduce by 2 Kenyan shillings (around 1¢) the price of a litre of diesel. The price of gasoline will be unchanged.
Kenya reinstated its fuel subsidy programme in August, a year after President William Ruto had scrapped it saying it was unsustainable. But fuel prices have soared in recent months, and are forecast to continue to rise. Kenya imports all its road fuel needs.
"We tapped from the national treasury some resources… to compensate oil marketing companies to manage the prices," said Epra director general Kiptoo Bargoria. He justified the extension by saying high fuel prices hurting the economy, raising costs for raw materials, elevating inflation and increasing the cost of living.
The east African country is not alone in seeking to alleviate the pressure on consumers. Global fossil fuel consumption subsidies exceeded $1 trillion in 2022, a record high according to differing methodologies used by the IMF and IEA. The UN Cop 26 climate meeting, in 2021, called for a phase-out of "inefficient subsidies", but did not set a deadline. The issue is unlikely to be high on the agenda at the upcoming Cop 28 summit.
Official data show consumption of gasoline in Kenya dropped by 5pc year on year in the first six months of 2023, and that of diesel fell by 4pc.
