Kenya's Energy Regulator must come clean on erratic pump prices

Even as crude oil prices continue to plummet on the international market, the Energy Regulatory commission (ERC) has baffled many Kenyans by recently increasing the price of petrol, diesel and kerosene when further cuts were expected.

The argument in favour of the increase in fuel prices is that the dynamics of a market only ERC understands, are different.

Tanzania and Uganda, despite being weaker economies than Kenya, have not raised their pump prices, leaving many Kenyans to wonder what drives the ERC; the desire to protect consumers against exploitation by oil marketers or the need to dance to the tune of multinational corporations that deal in oil products.

On the other hand, the Government has largely stood on the side-lines as the common man continues to be exploited. Mid last year, local manufacturers decried the high cost of production. Fuel prices had sky rocketed and the high cost of electricity was affecting businesses.

Consequently, after commissioning 140 megawatts of electricity into the national grid last year, President Uhuru Kenyatta promised the cost of power would come down by 40 per cent. When oil prices started to come down towards the end of last year, the expectation was that consumers would benefit from reduced commodity prices. The cost of living remains high.

The prices of essential commodities have not come down despite industries operating on a lower budget courtesy of lower diesel prices. Not even Public Service Vehicle operators passed on benefits of lower fuel prices to Kenyans.