Expand storage to avoid frequent fuel price crises

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An attendant at a fuel station in Nairobi. FILE PHOTO | NMG

The disclosure that the Treasury diverted fuel subsidy cash into payments to the SGR operator is a reminder that the solution to high fuel costs lies in addressing the myriad of levies and taxes.

It has been argued, including by this newspaper, that the fuel subsidy plan is not sustainable in the long term, and that the taxes charged on petroleum products must be moderated to account for the far-reaching effect of fuel prices on the cost of living.

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Note: The results are not exact but very close to the actual.