Protect consumers against exploitation

On Thursday last week, the World Bank (WB) released a report that shows Kenyan motorists are paying Sh15 more than they should for a litre of petrol.

According to the World Bank, a litre of petrol should be retailing at Sh67 in Nairobi. The report on the state of the economy reveals the extent of the exploitation the Kenyan people are subjected to amid falling prices of crude oil on the international market.

According to the WB report, crude oil prices have fallen 48 per cent between September last year and February this year.

The benefits in fuel price reduction should have amounted to 39 per cent, yet the Energy Regulatory Commission (ERC) has passed on to the consumer only 19per cent.

This vindicates complaints by various stakeholders that the Energy Regulatory Commission was not serving the interests of the common man but seems to be pandering to the whims of the multinationals dealing in petroleum products.

ERC’s mandate includes regulation, tariffs setting and reviews, licensing and approval of power purchase.

Its vision is to become a world-class energy regulator that facilitates and enhances delivery of sustainable, robust and quality service.

Until recently when its commitment to improving the welfare of Kenyans was questioned, its tariff reviews kept spiraling upwards to please oil marketers. When prices of crude oil go down, ERC is reluctant to pass the benefits to local consumers, acting with speed only when the prices go up.

The argument that the ERC has used over time to justify the high fuel cost has been a weak shilling, yet this is no longer tenable as the economy of the country seems to be doing well.

Even though the commission has reduced fuel pump prices over the last four months, the full benefits are yet to be felt by the common man who still has to contend with high fares.

Food prices are also yet to come down even though production costs for manufacturers have substantially been reduced. The Government is duty-bound to shield wananchi against such blatant exploitation.