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HomeBusinessEconomySenate Speaker Lusaka summons CS Keter, Munyes over arbitrary hiked fuel prices

Senate Speaker Lusaka summons CS Keter, Munyes over arbitrary hiked fuel prices

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Fuel prices have risen to the highest level in Kenya’s history after the National Treasury discontinued a subsidy scheme introduced in April this year to ease public outrage over ever-rising high cost of living.

To this end, a cross section of leaders have slammed the government for arbitrary raising the cost of fuel when Kenyans are battling with the harsh economic times coupled with the coronavirus pandemic.

Amani National Congress Party Leader Musalia Mudavadi said it was baffling and that local prices do not reflect international prices.

According to Mudavadi, EPRA’s formula is unsustainable and will only lead to high inflation.

“What the Ministry of Energy has always done is to pass the increased costs to the Mwananchi and business community, Changes in the computation of the applicable taxation regime have resulted in higher pump prices,” said Musavadi.

In parliament Wednesday, Senate Speaker Ken Lusaka summoned Energy Cabinet Secretary Charles Keter and his petroleum counterpart John Munyes to appear before the house next week on Tuesday.

This even as Matatu Owners Association has hinted at hiking bus fare following the recent fuel prices review by EPRA.

With some routes having already adjusted the fares already, Kenyans now fear for the worse.

On Tuesday the Energy Petroleum Regulatory Authority (EPRA) revised upwards a litre of petrol in Nairobi which will now retail at Ksh.134.72 from Ksh.127.14.

The cost of diesel meanwhile spiked to Ksh.115.60 from Ksh.107.66 while kerosene rose to Ksh.110.82 from Ksh.97.85.

Also Read:

  1. PSV to adjust bus fare to pass fuel burden to commuters
  2. Rabai Power denies dealing with EPRA and KPLC in recent hiked cost of energy
  3. Litre of petrol shoots to Ksh.134.72 in EPRA review

EPRA attributed the rising fuel prices higher costs for landed petroleum products with the cost of landed super petrol rising by 0.72 per cent, diesel by 4.81 per cent and kerosene by 0.96 per cent.

Last time Munyes was summoned before Senate to explain ever rising fuel prices was in June this year but snubbed.

Earlier, in March, the CS defended the hike in fuel prices after EPRA released petroleum pump prices for the period March 15 – April 14, 2021, resulting in a public outcry.

The CS said that EPRA uses a formula outlined in the Energy (Petroleum Pricing) Regulations of 2010 to calculate the applicable petroleum pump prices.

He said that the computation takes into account the landed costs, supplier margins, government taxes plus storage and distribution costs.

In August 2020, the CS snubbed the summon of the same committee, where he was to justify the Petroleum Development Levy Fund which was effected on July 15, 2020.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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