Petroleum CS Munyes rules out any fuel price deduction, blames National Treasury


Petroleum Cabinet Secretary John Munyes has ruled out any fuel price reduction.

Appearing before the Senate Committee on Energy, Munyes said fuel prices are determined by  external factors beyond the ministry’s control, and told Kenyans to brace for hard times ahead.

“The cargos will close on the 10th of October and therefore it is at that time we will know whether they are going up or down. So it is nor rocket science. It is not something I can say I will do because it is a formula that determines the price,” said Munyes.

The CS also blamed the National Treasury for failing to release Ksh.24 bllion meant for price stabilisation.

“Out of the Sh32 billion from the Petroleum Development Fund, we spent Sh8.6 billion in the five months to stabilise fuel prices. We did not receive any money in September,” Munyes explained.

He pointed out that the Kenya Revenue Authority collects money for the Fund on behalf of the Peteroleum Ministry and hands it over to the National Treasury for disbursement.

“The National Treasury is best placed to explain why they have not disbursed the money to us. It is for that reason I wanted my National Treasury counterpart to be part of this meeting,” he stated.

In the latest review by the Energy and Petroleum Regulatory Authority, fuel prices rose to highest levels in history with a the price of super petrol shooting by Ksh.7.58 per litre.

This is while the cost of diesel and kerosene rose by Ksh.7.94 and Ksh.12.97 per litre respectively.

The spike in fuel costs may be traced to an array of reasons including a weakened shilling, inflation and the usually uneven changes to international crude prices which largely take a cyclical flow over time.

However, according to the Energy and Petroleum Regulatory Authority (EPRA, taxes have borne higher prices for the petroleum products by far than any other reason given.

Kenyans today pay for nine different taxes on the purchase of fuel which contribute to nearly half the total costs of the petroleum products.

The nine taxes include excise duty, the road maintenance levy, the petroleum development levy, the petroleum regulatory levy, the railway development levy, the anti-adulteration levy (for kerosene) and the merchant shipping levy.

Others are the import declaration fee and the value added tax (VAT) which is currently the subject of a petition seeking to quash the tax to alleviate the pain at the pump.

In total, taxes and levies for petrol, diesel and kerosene presently add up to Ksh.58.81, Ksh.46.46 and Ksh.41.14 respectively.

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