Why Parliament must urgently reform fuel pricing before the September 14 EPRA review
As global oil markets close the week with Brent crude hovering dangerously near ninety-four dollars a barrel and WTI tracking at eighty-six point sixty-four, Kenya finds itself trapped in a familiar and agonising loop. Geopolitical instability in the Middle East and shipping gridlocks in the Strait of Hormuz have sent international energy prices surging. For […]
As oil markets close near $94 per barrel, Kenya grapples with the consequences of rising energy costs. Geopolitical issues and shipping delays have pushed international energy prices higher, directly impacting Kenyan families. The Energy and Petroleum Regulatory Authority (EPRA) recently cut diesel prices, but this was quickly offset by a rise in electricity bills, leaving inflation stubbornly high at 6.5%, driven by a 15.6% increase in transport costs.
The current ad-hoc approach of temporary subsidies is failing to address structural issues. MPs must act before the September 14 EPRA review to overhaul the fuel tax system. Nearly half of what Kenyans pay at the pump goes to taxes and levies; rationalising these could provide immediate relief. The Petroleum Development Fund, designed as a shock absorber, lacks transparency and often runs low, requiring rushed interventions.
The Senate should introduce strict oversight to ensure automatic price stabilisation during global crude spikes. Transitioning from a just-in-time import model to a ninety-day National Strategic Petroleum Reserve would give Kenya more control over domestic prices. Targeted energy rebates for agricultural transporters and manufacturers can prevent production chain collapses and rising food costs.
While the Central Bank keeps rates high to combat inflation, monetary policy alone isn't enough; legislative reform is crucial. Kenya needs to act decisively to protect its citizens from global energy shocks before the September deadline.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
