President William Ruto has promised a further Sh10 reduction in diesel prices in the June–July cycle after meeting PSV operators in Mombasa, as matatu leaders officially called off the nationwide strike.

📻 Breaking It Down

NAIROBI, Kenya, May 22 — President William Ruto on Friday promised a further Sh10 reduction in diesel prices in the upcoming June–July pricing cycle after meeting players in the public transport sector in Mombasa, as the government moved to calm growing public anger over soaring fuel costs.

Speaking at State House Mombasa following consultations with matatu operators, logistics players and other transport stakeholders, Ruto said the intervention was aimed at easing pressure on transport costs and stabilising pump prices amid what he described as a global fuel crisis triggered by instability in the Middle East.

The President defended his administration’s handling of the crisis, insisting Kenya was suffering the effects of a global oil supply shock linked to escalating conflict involving Iran and disruptions along the Strait of Hormuz, a key global oil route.

📌 What You Need to Know

“Over the past few weeks, many families, businesses, farmers and transport operators have felt the pain of rising fuel prices,” Ruto said, adding that the government had already spent billions to cushion consumers from the sharp increases.

According to the President, the government utilised Sh13.74 billion through the Petroleum Development Fund over the last two pricing cycles and also reduced VAT on petroleum products from 16 per cent to 8 per cent, sacrificing Sh14.43 billion in tax revenue.

Ruto said the interventions had already lowered diesel prices by Sh40.25 per litre during the April–May cycle and by a further Sh44.89 per litre in the current May–June cycle.

Without the subsidies and tax relief, he said diesel would currently retail at Sh277.75 per litre instead of the present Sh232.86.

The President also used the address to defend the controversial government-to-government fuel import arrangement, arguing it had shielded Kenya from worse economic fallout by guaranteeing uninterrupted fuel supply and easing pressure on the shilling.

“There are those trying to turn this global crisis into politics,” Ruto said, dismissing calls for the immediate removal of all fuel taxes and levies as unrealistic because they would cripple funding for public services, roads, schools and hospitals.

📰 Source: Capital FM Kenya