Fuel costs remain high as Govt fails to publish price controls

By PATRICK GITHINJI

Pump prices will remain high after the much-expected ministry of energy's legal notice was not published.

This means that motorists will continue to pay high for the commodity, which at moment is retailing at Sh98 a litre. This could have a ripple effect to prices of other basic commodities such as cooking gas and cooking flour.

Earlier in the week, Energy Permanent Secretary Patrick Nyoike had revealed that they had drafted a legal notice that would allow the Government to control pump prices.

"If all goes well, I hope we can get it issued by Friday," he said. He even went ahead to claim that "stiff and painful penalties" would be taken to those who defy the new regulations. "Any oil marketer increasing prices in the name of profiteering will face the law," Nyoike said on Tuesday.

Efforts to reach the PS were futile as his mobile phone was off and the landline went unanswered.

Matatu Owners Association Chairman Samuel Kimutai had welcomed the decision to control pump prices saying it would effectively lead to a reduction on the cost of transportation.

Once the regulations are enforced, Mr Kimutai said he would urge his members to pass on the benefits to their customers whom he said have been forced to pay more for transport services.

The attempt by the Government to rein in the renegade pricing by oil marketers comes in the wake of huge outcry across the country over the pump prices for petrol, diesel and kerosene.

Mid this year, the State in its attempt to address the issue, gave a nod to the National Oil Corporation to import 30 per cent of fuel.

PUMP PRICES

This was as a result of growing fears that the skyrocketing cost of fuel was not only hurting consumers, but also posed a great risk to the Government’s economic growth projections of five per cent for this year.

However, some fuel marketers have responded by lowering their pump prices, but consumers and the Government believe this is not enough. The unchecked pricing by oil marketers has been viewed by several sectors of the economy as unjust and driven by selfish interests.

Cotu Secretary-General Francis Atwoli alleges that political interference in the sector is to be blamed for the high prices.