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Kenya temporarily returns fuel subsidy following months of public outcry

Published

1 year ago

August 15, 2023

The Kenyan government has reversed its policy on the removal of fuel subsidies after a series of protests by members of the opposition and the general public.

President William Ruto has maintained that subsidies are unsustainable and announced the scrapping of subsidies on petroleum products shortly after coming into office in September 2022. He has also championed tax reforms that have led to unrest in some parts of the country after clashes between security officials and demonstrators protesting against tax hikes and the rising cost of living in the country.

“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the government has opted to stabilize pump prices for the August-September pricing cycle,” the energy regulator, Energy and Petroleum Regulatory Authority (EPRA), said in a statement.

The body stated that the Petroleum Development Fund would be used to pay the oil marketing businesses. According to EPRA, without its involvement, the cost of petrol in Nairobi would have increased to Ksh202.01 ($1.41) per litre, the cost of diesel to Ksh183.26 ($1.27) per litre, and the cost of kerosene to Ksh175.22 ($1.22) per litre.

In response to worries that dealers would incur cost “differences without clear mechanics of recovery” should the state proceed with its plan to intervene to lower petrol prices, EPRA Director-General, Daniel Kiptoo wrote to the chief executive officers of oil marketing businesses on August 9.

“The authority notes that volumes in excess of the quantities factored for the July to August pricing cycle may be introduced in the market prior to the next pricing cycle,” stated the EPRA director-general’s letter to the CEOs.

“Oil industry players are concerned that should the State intervene to cushion consumers from the high prices being experienced in the international markets in the coming pricing cycle, the cargo introduced prior will suffer cost differences without a clear mechanism of recovery.”

The subject of fuel subsidy has been contentious in many African countries. Top oil producers, Angola and Nigeria have both recently announced the removal of subsidies with varying degrees of resistance from the public and organized labour.

Related Topics:Featured Fuel subsidy Kenya president William Ruto

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”