Kenyans who use gasoline and other products can now grin since it is anticipated that the cost of petroleum and other associated goods will decrease even though President William Samoe Ruto removed the subsidy.CBK Governor Patrick Njoroge said during the introduction of Members of Parliament that although the price of fuel had reached a record high on the global market, it has started to decline.According to Governor Njoroge, the CEF estimates that the price of ULP95 gasoline will reduce by roughly R2.35/l and the price of ULP93 gasoline will decrease by about R2.18/l. Diesel prices are predicted to fall by 77 to 87 cents per liter, while paraffin for illumination will fall by roughly 82 cents per liter.
For instance, when the predicted decrease in the cost of this fuel is taken into account, the price of ULP95 will drop from its present R25.42/l to R23.07/l. This is still significantly more expensive than the R21.84/l May cost, while it is less expensive than the R24.17/l June price. It is a significant decrease from the January price of R19.61/l as well." It rose as high as Ksh15,662 (USD130) per barrel in March. At the moment, a barrel costs Ksh11,204 93 (USD93). It is projected that this will go substantially lower until we no longer require the subsidies.
"The subsidies for super fuel were indeed removed, but not for any other products.When the predicted decrease in this fuel is taken into account, the price of ULP95, for instance, will drop from its current R25.42/l to R23.07/l. Although less expensive than the R24.17/l pricing in June, this is still significantly more expensive than the R21.84/l price in May. The R19.61/l pricing from January is also a considerable cry from the current price." The price of a barrel rose as high as Ksh15,662 (USD130) in March. It is currently Ksh11,204,93 (USD93) per barrel. This is expected to go further down, to the point where we won't need the subsidies.
"Yes, we did get rid of the subsidies for super fuel, but not for anything else.He clarified that a significant inflation rate, which he associated with the price of oil, was experienced by importers of palm oil.
He continued by saying that while the regulator will carry out its job by attempting to control inflation, a better long-lasting answer will become apparent when the price of petrol declines.
"The price of fuel has changed, which will cause inflation to increase. But since that falls clearly within our purview, we won't allow it to drag on indefinitely.Since June, the global prices of many things have begun to come down, and we expect that by December, we will have much better landed prices,” he stated.The Governor concurred with President William Ruto that subsidies were bad for the economy but noted that they might also have an impact on inflation. He also urged participants to balance the advantages and disadvantages.Source Link;
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