EPRA defends move to hike fuel prices in February-March review

The Energy and Petroleum Regulatory Authority (EPRA) has defended their decision to increase fuel prices during these challenging economic times that are as a result of the prevailing Covid-19 pandemic.

On Sunday, the Central Organisation of Trade Unions (COTU) led Kenyans in condemning EPRA's move to hike prices for petroleum products. 

COTU argued that the move was insensitive to the suffering population because as it would lead to increased prices on other goods and services.

The organization issued a statement early this week condemning EPRA's move to allow for increases of up to Sh 8.19, Sh 5.51 and Sh 5.32 per litre for Super Petrol, Diesel and Kerosene respectively 

COTU Secretary General Francis Atwoli said, "Cotu views this move by the Authority as an affront to workers and Kenyans as a whole and demand for the Energy Ministry's immediate intervention in the matter to avoid any imminent confrontation that the government is likely to attract from workers and the rest of the Kenyans." 

However, according to EPRAs Acting Director General Daniel Bargoria, the authority decided to adjust the prices upwards because of the relaxation of the Covid-19 containment measures as economies globally were restarted.

“The matter of pricing is emotive and concerning to many Kenyans because of the Covid-19 pandemic that has slummed the economy. But after benchmarking globally the demand for crude oil has considerably risen leading to the high prices in its importation,” Bargoria stated. 

He was speaking in Eldoret on Thursday after a consultative forum for the draft review of the legislative framework regulating petroleum activities. 

According to the EPRA Acting Director, the import crude oil landing prices were very competitive.

Bargoria said, “Towards mid last year, there was a collapse in the price for crude oil globally. But now the demand for crude oil and petroleum products globally is high as a result of restart of world economies making us procure it at competitive prices.” 

He added that the consultations within the Ministry of Petroleum and the regulator on how to stabilise the pump prices going forward are ongoing. 

“Back in the 1980s the petroleum products were being sourced at a relative lower prices. We are finding a lasting solution to stabilise the pump to cushion the locals from fluctuating prices,” he affirmed.