Kiraitu ‘sitting on petrol price control proposals’

By David Ochami

You have been paying more for fuel due to Energy Minister Kiraitu Murungi’s dilly-dallying, the Energy Regulatory Commission says.

The commission disclosed that Kiraitu has been sitting on its recommendation to gazette regulations that will control petroleum cartels.

On Wednesday, the commission said it gave regulations to the minister, who holds the "key in price control" for the petroleum sector, early last year.

The commission also alleged the current rise in petroleum prices has been occasioned by the weakening of the shilling against the dollar and sharp rise in crude oil cost in the international market at the close of April.

Director of Petroleum Peter Nduru said this while testifying to Parliament’s Energy Committee. He said the minister has failed to gazette the regulations established after intense consultations with stakeholders.

Committee Chairman James Rege, members Edwin Yinda and Emilio Kathuri accused the commission of allowing oil sector players to fleece consumers and investors by failing to rein in on "greedy" dealers.

But Mr Nduru defended the commission and passed the blame to the minister and vagaries of the global system of capital.

"As of now we do not have the key to regulation. Up to now the minister has not gazetted the regulations," he told the House team.

Published notice

Early last year, Nduru said he published a notice in the media inviting public views to create the regulations. Consumers and other stakeholders responded in 40 days, according to the Act after which the commission recommended the regulations.

The director said the price of crude oil rose to $84.66 per barrel in April from $78.3 per barrel in March against a weakening shilling.

He blamed some crude oil exporters for backdating the price of pre-supplied products and local dealers who do not reduce pump prices.

According to prices fixed by the Abu Dhabi National Oil Corporation, crude oil was $77.5 per barrel in January and $74.2 in February before rising in March and April.

Mr Yinda questioned why oil dealers do not adjust fuel prices downwards when international prices fall, to which Nduru replied that exporters backdate price increments.