NAIROBI, KENYA: The Energy and Petroleum Regulatory Authority is on the receiving end following a significant rise in petroleum products price on Sunday.
ANC party leader Musalia Mudavadi said the move is likely to hit hard many households already struggling to make ends meet due to the effects of the Covid-19 pandemic.
Energy and Petroleum Regulatory Authority (EPRA) increased the maximum wholesale and retail petroleum prices for the period March 15 – April 14 by nearly 15 per cent.
Motorists will pay more for Petrol and Diesel by Sh7.63 and Sh5.75 per litre respectively. Households relying on Kerosene as a source of fuel will part with Sh 5.41 extra to access the commodity.
The Energy and Petroleum Regulatory Authority (EPRA) did not also spare households relying on Kerosene as a source of power after adjusting upwards the price of Kerosene by Sh5.41 per litre.
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In Nairobi, motorists will pay Sh122.81 for Super Petrol, Sh107.66 for diesel and Sh97.85 for households who depend on Kerosene while in Mombasa price for petrol diesel and kerosene has been adjusted to Sh120.41, Sh105.27 and Sh95.46 respectively.
Kisumu residents will pay Sh123.36, Sh108.46 and Sh98.68 for Petrol, Diesel and Kerosene respectively.
“The increases in the fuel pump prices will ultimately lead to an increase in the cost of production and transportation for ordinary Kenyans and businesses,” noted Mudavadi.
“What the Ministry of Energy has always done is to pass the increased costs to the Mwananchi and business community, to their detriment, while guaranteeing higher profit margins for oil marketers,” he said.
“Changes in the computation of the applicable taxation regime have resulted in higher pump prices. In fact, taxes now comprise roughly 60 per cent of the pump price for petrol, diesel and kerosene. It is totally, unacceptable for petrol to retail at 122.81 in Nairobi when the landing cost is 49.84!” he added.
In his suggestion to tame the rising cost of fuel in the country, Mudavadi called on the Ministry of Energy led by Cabinet Secretary Charles Keter to revise the formula in fuel pricing, review the tax regime on fuel products and reform the electricity cost structure to include more transparency in the determination of costs/pricing and improve overall efficiency.
He said the recommendations would enable the country to remove price distortions in the economy, enhance Kenya’s competitiveness and foster an increase in investments in the energy sector and the economy as a whole.
