The Kenyan Parliament has sent for the Cabinet Secretaries (CSs) for Petroleum and Energy regarding the removal of the fuel subsidy which was carried out on Tuesday the 14th of September 2021 and has resulted in the pump prices in the country hitting historic high levels from midnight of the same Tuesday.
Kenneth Lusaka who is the Senate Speaker directed the Petroleum Secretary; John Munyes and the Energy Secretary; Charles Keter to appear before the house on Tuesday the 21st of September 2021.
The Kenyan Government lifted the subsidies of 11.36 Kenyan Shillings for Kerosene, 9.90 Kenyan Shillings for Diesel, and 7.10 Kenyan Shillings for Petrol all of which applied on the prices for fuel sold in the month leading up until the 14th of September 2021.
The removal of the subsidies led to an increase in the prices of Petrol and Diesel. For Petrol it increased by 7.58 Kenyan Shillings per litre in Nairobi to 134.72 Kenyan Shillings while for Diesel in increased by 7.94 Kenyan Shillings to 115.6 Kenyan Shillings per litre, becoming the highest prices in the history of Kenya.
The Senate Speaker; Kenneth Lusaka stated that, “I direct that the committee on Energy immediately issue summonses to the two Cabinet Secretaries and the Energy and Petroleum Regulatory Authority (EPRA) to appear on Tuesday. All senators should be invited to sit at this chamber.”
The lawmakers in the Kenyan Parliament want the Cabinet Secretaries (CSs) to explain why the subsidies were stopped especially as the expensive fuel will most likely now result in the occurrence of a pricing pressure across the Kenyan economy along with leading to serious consequences with regards to the cost of living measure.
The summoning is coming after a request for a statement was filed by the Nandi Senator; Samson Cherargei, regarding the increase in prices of petroleum by the Energy and Petroleum Regulatory Authority (EPRA) on Tuesday; the 14th of September 2021.
Since March of 2021 the East African nation of Kenya has offered consumers within its borders, subsidies on fuel products. Those who use Petrol, enjoyed the subsidy benefits with the exemption of the review in May.
This led to the regulator; Energy and Petroleum Regulatory Authority (EPRA) making the Kerosene price and Diesel price stay the same since April of 2021 at 97.85 per litre and 107.66 Kenyan Shillings per litre respectively. The decision was made as a result of fears that an upward review could lead to public outcry. Petrol has however remained at 127.14 Kenyan Shillings since June of 2021.
The Kenyan economy is driven by Diesel and the fact that fuel is now expensive could very possibly cause pricing pressure throughout the entire economy. This is because manufacturers will pass on the increase in costs to their consumers.
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