MPs ponder law change following fuel hike uproar

In a solidarity show of regret as a result of previous decisions which continue to impact fuel prices, members of National Assembly on Tuesday vowed to act in order to ease the hiked prices in recent the review.

Last week, the Energy and Petroleum Regulatory Authority (EPRA) in its monthly fuel review, increased a litre of kerosene by Kshs. 12.97, super petrol Kshs. 7.54 and diesel Kshs. 7.94 triggering consumer uproar.

While reacting to a petition by Anthony Manyara, John Wangai and Matungulu MP Stephen Mule on Tuesday, Speaker Justin Muturi has directed the standing Committee on Finance and National Planning to table a report on the fuel price increase by EPRA within 14 days due to its urgency and effect it has on Kenyans.

Under the Finance Act 2018, fuel products attract a Value Addition Tax of 8%.

“No member needs to feel uncomfortable because as parliament we are being bashed. Even as we work on the issues surrounding this matter, let the committee not be driven by a feeling of guilt that parliament imposed a tax,” said Amos Kimunya, Leader of Majority.

One time EPRA boss, Bonchari MP Pavel Oimeke argued that parliament had given the energy minister immense powers to determine petroleum taxes.

“Take for example the Petroleum Development Levy, the minister and the principal secretary single-handedly decided to raise raised Petroleum Development Levy from 40 cents to Kshs. 5.40, the committee on Finance and National Planning needs to critically look at the framework and structure of taxation to make sure it is sustainable.”

The discussion came hours after Energy Cabinet Secretary Charles Keter and his Petroleum and Mining counterpart John Munyes skipped a summon by Senate Energy Committee.

The Gladys Wanga led-committee is also required to attach a draft bill to the report for any approval for publication proposing legislative intervention to the House as sort by the petitioners.