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  • January 31, 2023
  • Last Update July 1, 2022 11:51 am
  • Nairobi

We have no powers to reduce fuel prices, says EPRA boss

We have no powers to reduce fuel prices, says EPRA boss

The National Treasury, the Ministry of Energy and Parliament are the state agencies that can influence the price of fuel in the country.

This is according to Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo who told Senators that the regulator had no powers to reduce fuel prices, since it tabulates the pricing using a formula approved Parliament and National Treasury.

Kiptoo further says EPRA did not subsidize fuel this month because the National Treasury did not approve use of Fuel Stabilization Fund, which it often taps to cushion consumers.

On Tuesday, Kiptoo told the National Assembly Committee on Finance and National Planning that the Fuel Stabilization Fund had been use in the last four months.

However, the last review on September 14, 2021, resources from the fund were not utilized leading to increases in kerosene, super petrol and diesel by Kshs. 12.97, Kshs. 7.54 and Kshs. 7.94 per litre respectively, leading to public outcry.

Kiptoo said Kshs. 8.7 billion from the fuel stabilization kitty had so far been spent on subsidizing fuel prices.

When legislators questioned the taxes and levies on fuel, Kiptoo said the answers lied with the legislators, the National Treasury and the Ministry of Energy who can set or revise the components of the fuel pricing formula.

The National Assembly Speaker Justin Muturi directed the standing Committee on Finance and National Planning to table a report on the fuel price increase by EPRA within 14 days due to its urgency and effects it has on Kenyans.

The committee is also required to attach a draft bill to the report for any approval for publication proposing legislative intervention to the House.

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