Parliament has opened an inquiry into the pricing model of petroleum products by the energy regulator following public uproar over the steep rise in the cost of petrol.
A joint committee of the National Assembly has been directed to commence a probe into the activities of the Energy and Petroleum Regulatory Authority (Epra) in setting the monthly fuel prices.
The committee has 30 days to report back to the House.
Parliament has opened an inquiry into the pricing model of petroleum products by the energy regulator following public uproar over the steep rise in the cost of petrol.
A joint committee of the National Assembly has been directed to commence a probe into the activities of the Energy and Petroleum Regulatory Authority (Epra) in setting the monthly fuel prices. The committee has 30 days to report back to the House.
Speaker Justin Muturi directed the committees on Energy and that of Delegated Legislation to jointly deal with a statement sought by Mvita MP Abdulswamad Nassir who asked Parliament to intervene and reverse the skyrocketing prices of petroleum products.
Petrol is currently retailing at a level last seen in November 2011 while diesel is selling at the highest level since December 2018.
The sharp rise in fuel prices since the start of the year has shifted the spotlight on taxation of petroleum products, with Kenyans in border towns reportedly seeking cheaper fuel in neighbouring countries of Tanzania and Uganda.
“In order to cushion consumers from recurrent price shocks occasioned by questionable pricing regime, I seek your indulgence under Standing Order 218(2) and ask you …to urgently inquire into the matter, including engaging Epra to explore avenues of revising the petroleum pricing parameters that are anchored on Energy (Petroleum Pricing) Regulations 2010 and the Energy (Petroleum Pricing) (Amendment) Regulations 2012,” Mr Nassir said.
Motorists in Nairobi are paying Sh122.81 per litre of super petrol from Sh115.18, representing a Sh7.63 increase, and Sh5.75 more for a litre of diesel at Sh107.66.
Epra has linked the expensive fuel to the recovery in crude oil prices, which increased the cost of imported refined fuel from $55.27 a barrel to $61.61 in April last year. Taxes and levies account for Sh57.33 for every litre of super petrol, and Sh45.47 and Sh39.55 per litre of diesel and kerosene respectively.
Excise duty accounts for the biggest chunk of the taxes and levies at Sh21.95 per litre in the latest prices followed by Road Maintenance Levy (Sh18), VAT (Sh9.10) and the Petroleum Development Levy (Sh5.40).
Others are Railway Development Levy, Anti-adulteration Levy, Merchant Shipping Levy and the Import Declaration Fee.
Epra also considers the landed cost of petroleum imports, margins for the oil marketing companies, and storage and distribution costs when setting the fuel prices.
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Note: The results are not exact but very close to the actual.
