Put regulations for fuel subsidy scheme in place

The inconsistent offering of a fuel subsidy to motorists is a clear indicator that the plan has not been well thought out. It should either be rolled out properly or scrapped altogether.

The rise in the price of fuel to an all-time high due to the removal of the relief measure in the latest price review will have a big impact on the cost of goods and services at a time when Kenyans are already grappling with rising inflation.

Food prices that are already high will undoubtedly go up, as are transport costs and household energy bills.

The way the subsidy was envisaged did not call for the Ministry of Energy to pick and choose when to offer motorists relief. It was to be triggered automatically when prices rose past a certain point.

Instead, what we have seen in recent months is the subsidy being employed to calm public anger over rising fuel prices, and removed once the government deems this outrage to have sufficiently subsided.

For it to have the desired effect of protecting motorists from wild swings in fuel prices, it is high time a framework governing its use was put in place.

As it stands, the rules governing this subsidy are yet to be fully implemented, leading to the unpredictable use as we have seen in recent examples.

The government must therefore move speedily to have the legal framework in place. This will also go a long way in making sure the billions of shillings collected so far from motorists can be accounted for in a transparent manner.

In the meantime, motorists are suffering a double hit, given that they are back to paying the full price for petroleum while still being levied the Sh5.40 per litre that goes into the subsidy.

In the interest of fairness, the government should cease collecting the levy until such a time when the necessary laws are in place to allow it to be used properly.

This will immediately ease some of the pain at the pump for motorists at a time when every shilling in hand counts.