This move marks a significant turnaround, as Kenya had removed the fuel subsidy just three months ago as part of its commitment to conditions set by the International Monetary Fund for securing a new loan.
While Nigeria watches these developments, some are hoping that President Bola Tinubu might consider similar action as discussions arise about the possibility of fuel prices exceeding N700 per litre.
The Kenyan government's decision to reintroduce fuel subsidy payments is a notable shift, prompted by the substantial rise in commodity prices within the country. President William Ruto took this step as a response to the mounting economic pressures experienced by Kenyan citizens, as reported by BusinessDaily Kenya.
The Energy and Petroleum Regulatory Authority (Epra) communicated to the public that the government aims to stabilize pump prices for the August-September pricing cycle in order to mitigate the impact of increased landed costs. Epra also assured oil marketing firms that the government would be prepared to reimburse them for the difference in pricing between the cheaper stock introduced and the retail price.
Meanwhile, Nigerians are bracing themselves for the possibility of new fuel prices surpassing N700. Recent reports have indicated that oil marketers anticipate petrol costs to rise between N680/litre and N720/litre in the coming weeks.
If these increases are implemented, it would mark the third hike within a span of 10 weeks following the announcement of the removal of the petrol subsidy.
While the Nigeria National Petroleum Company Limited (NNPC) has maintained that there are no plans to increase the pump price of petrol, the ultimate resolution of this situation rests significantly on the forthcoming decision of President Bola Ahmed Tinubu.