Members of the National Assembly Public Investments Committee on Commercial Affairs and Energy have raised concerns over the country’s recent spike in fuel prices.
Led by chairperson David Pkosing, members who met Energy and Petroleum Regulatory Authority (EPRA) managing director Daniel Kiptoo over audit queries in the Agency’s financial books sought to know why the price adjustments were constantly rising.
Kiptoo appeared before the Committee to respond to audit queries raised in the agency’s books for Financial Years 2019/21 and 2020/21 when questions on the rise in fuel prices arose.
The price of fuel rose in October by about Sh5.72 for petrol, Sh4.48 for diesel and Sh2.45 for kerosene, placing the overall costs at about Sh217.36, Sh205.47 and Sh204.46 for both petrol, diesel and kerosene respectively.
Pkosing, who is the MP for Pokot South, sought from EPRA why the monthly price changes were constantly on an upward trend to the detriment of Kenyans.
“We know global crude oil prices are coming down across the world market. So how do you explain the constant rise in domestic prices for refined fuel?” Pkosing asked.
In response, Kiptoo told the Committee that fuel prices are calculated based on the computation of components not within the agency’s control.
He added that emergent local and external economic factors, including constant depreciation of the Kenyan Shilling against the US dollar, had occasioned the recent rise in fuel prices.
Among the audit queries for which the Committee had invited the EPRA management to discuss were concerns by the Office of the Auditor-General (OAG) that the Agency could have incurred irregular expenditures on a contract for the provision of Liquefied Petroleum Gas (LPG) compliance inspection services and another for monitoring of Domestic Kerosene in FY 2020/21.
According to the auditor’s report, EPRA signed a contract to provide LPG compliance inspection services, resulting in an overpayment of Sh7.3 million in the Financial Year 2020/21.
The figure is expected to rise considering there are still nine months to the end of the two-year contract.
The Auditor-General further noted that EPRA had awarded a two-year contract for monitoring domestic kerosene, resulting in an unexplained overexpenditure of Kshs. 65.3M in the Financial Year 2020/21.
Kiptoo told the committee that the expenditures were well within the projected Contractual figures.
“The payment towards the contract for monitoring domestic kerosene as of February 23rd 2021, was Sh113.3 million, which was within the estimated full contract amount of Sh 181.4 million,” said Kiptoo.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
