Energy Cabinet Secretary Opiyo Wandayi has attributed the rising fuel prices in Kenya to the country’s heavy tax regime, even as landing costs remain lower than in neighboring Tanzania and Uganda.
Appearing before the National Assembly Committee on Energy, CS Wandayi distanced the Executive from the public uproar over the recent KSh 9 per litre increase in fuel prices, instead pointing a finger at Parliament for approving the taxation measures proposed by the National Treasury.”Kenya’s fuel is cheaper at the landing point than in Uganda or Tanzania,” Wandayi told MPs. “But it becomes expensive at the pump because of the numerous taxes imposed on it.”
The CS added that residents living near Kenya’s borders were increasingly sourcing fuel from neighboring countries due to the stark price differences. In the latest review by the Energy and Petroleum Regulatory Authority (EPRA), Super Petrol prices rose from KSh 181 to KSh 186 per litre, a hike that triggered public outrage.
The MPs have raised concerns over the extension of the Government-to-Government arrangement importation of petroleum products stating that they have not assessed the terms of the extension despite the increase of prices.
This comes as the energy chief stated that the Cabinets approval for the extension of the period of the Government-to-Government arrangement for an additional 24 months after the expiry of the current contract will aid in lowering the cost of fuel in the country.
The G-to-G arrangement is now set to expire within first quarter 2028. The committee now says they will assess the renewal of the G to G arrangement before rendering its verdict.
