Economy

MPs push for set up of petroleum fund as prices skyrocket

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MPs during a session at Parliament chambers. PHOTO | FILE

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Summary

  • Parliament wants the National Treasury to urgently put into operation the Petroleum Consolidated Fund to help stabilise pump prices.
  • The National Assembly’s Committee on Delegated Legislation said delay in setting up the fund has led to sky-rocketing prices.
  • The Petroleum Act, 2019 established the Fund to cater for strategic stocks to be used to stabilise fuel prices in case of increases.

Parliament wants the National Treasury to urgently put into operation the Petroleum Consolidated Fund to help stabilise pump prices.

The National Assembly’s Committee on Delegated Legislation said delay in setting up the fund has led to sky-rocketing prices.

The Petroleum Act, 2019 established the Fund to cater for strategic stocks to be used to stabilise fuel prices in case of increases.

“The operationalisation of Petroleum Consolidated Fund provided for in the Petroleum Act needs to be fast-tracked,” the committee chaired by Muturi Kigano said.

The law requires the Cabinet Secretary for Petroleum to prescribe regulations for the management of the Fund.

A joint committee of the National Assembly is inquiring into the pricing model of petroleum products by the energy regulator following public uproar over the steep rise in the cost of petrol.

The latest price review pushed the price per litre of super petrol in Nairobi to Sh126.37 ($1.18) while that of diesel and kerosene remained unchanged at Sh107.66 ($1) and Sh97.85 ($0.91), respectively.