Consumer lobby faults regulator over fuel prices

The Consumer Federation of Kenya (Cofek) has faulted the latest move by the Energy Regulatory Commission (ERC) to raise fuel prices.
Super petrol now retails at Sh117.69 in Nairobi up from Sh113.57, while diesel at Sh107.37 from Sh106.20 and kerosene Sh88.54 up from Sh85.93, according the adjustments announced by the regulator on Thursday.

Cofek secretary-general Steven Mutoro said on Friday the ERC had failed to put in place policies that would stabilise fuel prices.

“The new government should ensure ERC adopts a robust regime designed to cushion the country from endless price reviews,” said Mutoro.

Cofek expressed its fears over economic effects the move is likely to cause, citing knock-on effects such as higher electricity, transport and food prices.

This comes at a time when electricity tariffs are set to rise later this year following confirmation by the energy sector regulator that it will allow Kenya Power to increase monthly tariffs charged on consumers.

The electricity distributor last reviewed power tariffs in July 2008 and had applied to ERC for approval to raise the rates by 25 per cent in June 2011. The government, however, suspended the tariff review.

Mr Mutoro called upon the government to expedite the process of gazetting the Consumer Protection Act, 2012 which operationalized their mandate from March 1.

All regulatory bodies in the country, he said, should have consumer representatives for checks and balances as stipulated in the Act.

Cofek said it will work closely with the new government, private sector, and civil society to ensure consumer protection is realised.

The consumer lobby also encouraged Kenyans to report any forms of mal-practices with the authority.

ERC had earlier cited a rise in the price of international crude oil as the reason for its move. According to the regulator, Murban crude price increased by 3 per cent since January, while super petrol increased by 5.7 per cent, diesel by 3.4 per cent and that of kerosene steeped by 8.2 per cent.

Though the international crude prices increased, ERC noted that the shilling held steady against the dollar throughout the period.