Economy

MPs seek views on fuel price monthly reviews

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Parliament buildings in Nairobi. FILE PHOTO | NMG

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Summary

  • MPs will determine whether fuel prices should be reviewed monthly in an investigation that seeks to lower petroleum costs.
  • The lawmakers will seek views from Kenyans on whether the review of petroleum prices should be extended beyond one month.

MPs will determine whether fuel prices should be reviewed monthly in an investigation that seeks to lower petroleum costs.

The lawmakers will seek views from Kenyans on whether the review of petroleum prices should be extended beyond one month.

This follows concerns raised in a public petition to Parliament on the drastic increase in prices of petroleum.

Kenya imposed fuel price controls in December 2010 following a public uproar over sharp rise in petroleum prices.

“The committee…has resolved to conduct and inquiry into the drastic increase in petroleum and petroleum products to determine whether pricing of petroleum should be done monthly or whether the period should be increased,” Gladys Wanga, who chairs the Finance committee said in a notice to the public.

The committee has 14 days to conclude its inquiry that will also ascertain whether there are other causes driving up prices apart from taxes and levies.

Taxes and levies accounts for the biggest chunk of the price of fuel and products at Sh58.81 per litre of petrol, diesel (Sh66.61) and Kerosene (Sh41.14).

A litre of petrol currently retails at Sh134, diesel (Sh115.6) and kerosene (Sh110.82) in Nairobi. As a percentage, taxes and levies accounts for 43.65 percent per litre of petrol, 40.32 percent for diesel and 37.12 percent of a litre of kerosene.

The product cost accounts for Sh60.35 per litre of petrol, Sh53.88 for diesel and Sh54.44 for kerosene.

Distribution and storage accounts for Sh3.17, Sh2.9 and Sh2.88 for petrol, diesel and kerosene, respectively while margins takes Sh12.39 for petrol and Sh12.36 per litre of diesel and kerosene.

Others are Railway Development Levy, Anti-adulteration Levy, Merchant Shipping Levy and the Import Declaration Fee.

The Finance committee is seeking to inquire into the amount of revenue raised from each of the taxes and levies paid on petroleum products per month.