Ruto saves 14.7B taxpayers’ money in subsidy scrap off.
In his first 3 days in office, president Ruto saves 14.7B Taxpayers’ money by doing away with the subsidy program.
In his inaugural speech, president Ruto revealed that the country will spend a total of ksh. 280 Billion catering for the fuel subsidy program; which is unsustainable.
Ruto also said Before his action which saw fuel prices in the country hit a record high, taxpayers had spent a total of Ksh144 billion, including Ksh60 billion in the past four months to sustain the program.
Due to this, the government has resolved to used this money to Petroleum Development Levy to compensate Oil Marketing Companies (OMCs) for the difference in cost from September 15 to October 14.
The move is also a relief to the treasury which has been working to pay oil marketers to maintain fuel prices.
However, withdrawal of subsidy program saw the hike of fuel prices yesterday.
Also read New Fuel rates as EPRA hikes fuel prices
EPRA stated,”Taking into account the weighted average cost of imported refined petroleum products and in line with government policy to progressively remove subsidy on petroleum fuels, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Ksh 20.18 per litre, Ksh 25 per litre and Ksh 20 per litre respectively.”
Mixed sentiments have been expressed with some supporting the move while others against it.
Leaders such as Alice Wahome said the president could not have entirely scrapped off the subsidy program knowing where the country stands with fuel demands.
Alice Wahome said,”am privy to the report that the President received on the cost of fuel and it was nearly impossible for him to reduce the cost but it will only be a matter of time before the issue is sorted.”