Government fuel subsidy keeps prices stable despite global oil pressures

Fuel consumers across the country will continue to benefit from the government’s fuel relief assistance this month, easing pressure from rising global fuel prices.

Retail prices of petroleum products were expected to increase further; however, the National Government’s fuel subsidy program has cushioned the impact on consumers.

Now in its second month of implementation, the fuel relief subsidy continues to provide significant support to households and businesses facing increasing fuel costs.

The government introduced the assistance package in response to ongoing global conflicts and rising international oil prices, which have driven up fuel import costs worldwide.

Last month, the first K100 million tranche of the government’s K1 billion fuel relief commitment was released to support the program.

It is understood fuel importers are purchasing fuel at higher international market prices while continuing to supply domestic retailers and contracted customers at March pricing levels, with the government subsidy covering the difference.

In a statement released on Thursday, Independent Consumer and Competition Commission Chief Executive Officer and Commissioner, Roy Daggy, said retail fuel prices would have risen sharply this month without government intervention.

According to the ICCC, petrol prices would have increased by 14 toea, from K6.10 to K6.24 per litre. Diesel prices would have risen by 66 toea, from K7.69 to K8.35 per litre, while kerosene prices would have climbed by K1.04, from K7.44 to K8.48 per litre.

However, with the government’s relief assistance in place, the increases have been reduced significantly.

As a result, consumers will continue paying March fuel prices, with petrol maintained at K4.39 per litre, diesel at K4.44 per litre, and kerosene at K4.09 per litre.