The Motorists Association of Kenya wants the government to sign a legally binding agreement guaranteeing lower fuel prices following the launch of the Ksh2.2 trillion Dangote oil refinery project in Lamu.
The association said on Friday, October 2, that the government should explain how motorists will benefit from the refinery and ensure any savings from the project are reflected at the pump.
The motorists also want the government to make public all contracts and agreements signed with the Dangote Group over the refinery.
“Unless these demands, specifically written assurance on lower fuel prices and full disclosure, are met, the motoring public unconditionally rejects and condemns the current structure of the Lamu Refinery,” the association said.
According to the motorists, they are among the biggest consumers of petroleum products and depend on roads to transport people and goods, yet they were not adequately involved in discussions around the refinery project.
“While the political class and regional trade merchants celebrate this mega-deal as a landmark investment, we note with deep concern that the primary stakeholder, the Kenyan motorist and end consumer, has been completely ignored,” it said.
The association questioned claims that the refinery could help Kenya save money on high-seas insurance premiums.
It argued that there had been no clear commitment from the government that such savings would eventually translate into lower fuel prices for consumers.
The motorists also pointed to the Turkana oil project, saying Kenyans had not seen direct benefits from crude oil extracted in the region despite motorists contributing to road development through the Road Maintenance Levy.
The association further criticised changes that have increased the cost of fuel over the years.
Among the issues it raised were the removal of the Ksh5 per litre fuel subsidy, the increase in VAT on petroleum products from eight to 16 per cent and a Ksh7 increase in the Road Maintenance Levy.
The group also questioned the Government-to-Government fuel supply arrangement, saying motorists had initially been promised price stability but later experienced increases in pump prices.
“Motorists were promised a six-month price stabilisation guarantee. Instead, prices were increased under the false pretext of Strait of Hormuz tensions,” the association claimed.
The demands come shortly after President William Ruto defended the Dangote refinery project and warned against attempts to interfere with the Nigerian billionaire’s investment in Lamu.
Ruto said he had heard people asking for details of the agreement behind the refinery project, questioning why anyone would oppose the investment.
“Imagine people are opposing that refinery in Lamu. Just imagine, yesterday I heard some people asking for the agreement of the Dangote refinery,” he said.
The Motorists Association is now calling for greater transparency around the project and a clear commitment on how its expected benefits will reach motorists and other fuel consumers.
