Nairobi, Sept. 4 -- The guidelines on implementation of a State fuel subsidy raises questions about the rationale behind it. The subsidy is meant to ensure local motorists do not suffer steep price increases caused by global market changes.
Yet by curiously limiting it to diesel consumers, the Energy ministry could be unwittingly be using the price stabilisation tool to inflict suffering on one class of motorists while offering relief to another.
The justification given by the ministry officials for the decision when they appeared before Parliament this week is that diesel powers the economy.
It is widely used by transporters and in agricultural machines. Any fluctuation in its price usually has a ripple effect on the entire value chain,...