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MPs provide Sh6.7bn fuel subsidy in mini budget

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By Judith Gicobi

To buffer customers from the shocks of increased fuel costs, lawmakers have set aside Sh6.7 billion for fuel subsidies.

Under the Petroleum Development Levy Fund, the revenues will be channeled to the Petroleum Ministry to provide a fuel subsidy.

“Increase Sh6.7 billion (recurrent) for fuel stabilization,” the National Assembly’s budget committee suggested in a report to the entire House.

Following a quick rise in global Brent crude oil prices, the Energy and Petroleum Regulatory Authority boosted petrol and diesel prices by Sh5 per liter this month, bringing the cost of the two commodities to a joint historic high.

The increase came when the government removed a portion of the fuel subsidy that had stabilized fuel prices, pushing the cost of petrol and diesel to Sh134.72 and Sh115.6 per liter, respectively, raising Kenyans’ growing cost of living.

The new allotment is expected to boost the subsidy and keep it continuing for long  though the  global Brent crude prices have risen in recent weeks owing to supply disruptions triggered by Russia’s invasion of Ukraine last month,

MPs have also earmarked an additional Sh5 billion to the fuel subsidy for the fiscal year 2022/2023.

The cash, according to the Budgets and Appropriations Committee, would assist stabilize fuel prices amid global volatility.

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