The Kenyan Parliament recently interrogated the Energy and Petroleum Regulatory Authority (Epra) Director-General, Daniel Kiptoo, over the continuous rise in pump prices despite a downward trend in global crude oil prices. The National Assembly’s Public Investments Committee on Commercial Affairs and Energy questioned Kiptoo on the reasons behind the surge in local pump prices. The latest review from Epra increased the prices of super petrol, diesel, and kerosene per litre. These increases have caused concern among Kenyans, who are also experiencing a rise in the cost of essential goods.
During the parliamentary session, Pokot MP David Pkosing highlighted that the issue of rising pump prices requires intervention beyond Kiptoo and Epra. He emphasized the need for political and economic actions from the Cabinet Secretary for Petroleum. Pkosing stated that expecting answers solely from Kiptoo would be futile and insufficient. Kaloleni MP Paul Katana further questioned whether fuel prices would reduce in the near future. He also inquired about the status of the government-backed fuel import credit scheme negotiated with Gulf states.
The fuel import credit scheme, initiated by the Kenyan government in collaboration with the United Arab Emirates and Saudi Arabia, aims to ease foreign exchange pressure by deferring the demand for dollars required for fuel purchases. However, concerns have been raised about the effectiveness of this arrangement, leading to calls for the engagement of the Cabinet Secretary for Petroleum to address the issue comprehensively.
Director-General Kiptoo assured the parliamentary committee that Kenya is still engaged in the government-to-government arrangement with the UAE and Saudi Arabia. He stated that the arrangement was intended to reduce fuel prices and stabilize the value of the Kenyan shilling against the US dollar. Kiptoo expressed hope that fuel prices would eventually decrease due to the fluctuating nature of the oil business. However, he clarified that monthly pump prices are determined by various parameters, and Epra follows the criteria set in law without discretion.
MP Lilian Gogo accused Epra of increasing monthly pump prices without considering the plight of poor Kenyans. Gogo expressed her frustration, highlighting the continuous suffering faced by Kenyans due to high fuel prices during Kiptoo’s tenure. In response, Kiptoo clarified that Epra has no control over the taxes, levies, landed costs, and profit margins imposed on petroleum products. These factors are regulated by law, and the authority abides by the legal guidelines when calculating monthly pump prices.
The parliamentary session shed light on the concerns surrounding rising fuel prices in Kenya. While Director-General Kiptoo acknowledged the hardships faced by the public, he emphasized the constraints of his authority in controlling the various cost factors involved. The ongoing government-to-government arrangement with the UAE and Saudi Arabia aims to alleviate foreign exchange pressure but requires further scrutiny and evaluation. As Kenyans continue to grapple with the impact of rising fuel prices, there is a call for holistic interventions that involve political and economic stakeholders beyond the energy regulator.
