According to the current petroleum products assessment released by the Energy Petroleum and Regulatory Authority (EPRA) on Wednesday, September 14, the government of President William Ruto has reduced the amount spent on fuel subsidies from Ksh19 billion to Ksh4.3 billion. Thus saving tax payers money in just 3 days in office.
The decision resulted in a savings of Ksh14.7 billion during his first three days in office, marking the start of the president’s official 100-day mark in office. Ruto warned in his inauguration address that the country could be compelled to pay more than Ksh280 billion on fuel subsidies, an amount he argued it was “unsustainable.”
Withdrawing the funds eased pressure on the Treasury, which had been trying to pay oil marketers to keep oil prices stable under former President Uhuru Kenyatta.
A total of Ksh144 billion, including Ksh60 billion in the past four months to support the program, had already been spent by taxpayers prior to his decision, which caused petrol prices in the country to hit a record high.
After issuing the order to end fuel subsidies, Ruto was sure that prices would rise, and he was also concerned about a repeat of the shortage that occurred during the administration of his predecessor, Uhuru Kenyatta.
“I 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,” she stated, defending the high record fuel prices released by EPRA close to midnight on the previous day,” she stated.