An attendant fuels a automobile at a Rubis petrol station in Nairobi. FILE PHOTO | NMG

Motorists paid Sh15.63 billion to stabilise pump costs within the first eight months of the present monetary 12 months to February 2023, paperwork from the Ministry of Power present, amid struggles by the State to clear billions of shillings owed to grease entrepreneurs.

The Treasury has to date spent Sh8.7 billion of the cash to compensate oil sellers for preserving pump costs low within the interval and is but to pay an estimated Sh50 billion to sellers.

Motorists pay Sh5.40 per litre every for diesel and petrol for the levy that was elevated from Sh0.40 in July 2020, reflecting a 1,250 % bounce.

Learn: State denies petrol motorists Sh8.5 drop in pump costs

The Ministry of Power spent Sh4.04 billion on undisclosed initiatives, leaving a stability of Sh6.43 billion as of Monday.

Kenya began stabilising gas costs within the month-to-month assessment that ended on April 14th 2021, however the subsidy scheme has confronted cash-flow hitches attributed to unlawful diversions of money meant to compensate oil corporations.

A world rally in crude costs final 12 months elevated compensation margins per litre of tremendous, diesel and kerosene prompting the Treasury to assessment spending and liberate extra funds to spice up the PDL.

The scheme was rolled out two years in the past within the wake of a world rally in crude costs that despatched native pump costs to document highs, prompting the intervention in a bid to forestall a spike in the price of dwelling.

Learn: Caps on wholesale gas costs to make a comeback

Oil entrepreneurs say they haven’t been paid for six month-to-month cycles highlighting the struggles by the Treasury amid debt servicing obligations which have choked different finances objects.

The Treasury is looking for an additional Sh42.7 billion within the supplementary finances for the 12 months ending June in a bid to offer sufficient money to clear the billions owed to grease sellers.

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