President William Ruto’s administration has denied motorists a Sh10.94 reduction per litre of petrol in a bid to slow down the runaway cost of living by cushioning key sectors of the economy that run on diesel.
The State opted to provide a Sh18.79 a litre subsidy on diesel, with the motorists running on petrol paying half of the financial aid.
This means that petrol users will pay Sh9.94 for every litre of diesel consumed in efforts to reduce the State burden on catering for the subsidy.
Without the subsidy, the costs of a litre of diesel in Nairobi would have retailed at Sh180.82 from the current Sh162 while a litre of petrol would have dropped to Sh167.36 from the current Sh177.3 a litre.
Fuel prices have a big effect on inflation in Kenya, which relies heavily on diesel for public transport, power generation and running farm machinery.
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