The National Assembly Finance Committee has requested another seven days to complete the review of the factors behind the high fuel prices.
Chair Gladys Wanga (Homa Bay Women’s Representative) said at a plenary session on Tuesday that the The committee needs to review new details on mooring charges.
Demurrage is the fee based on the time it takes a ship to unload fuel at the Mombasa Port terminal for storage by the Kenya Pipeline Company .
The committee should complete its review of the factors that stage the high fuel prices by Wednesday.
Wanga said her team had made significant progress, however, by having 10 stakeholders in the fuel sector
“The committee has received new information about demurrage that affects fuel prices. We would like to investigate further into the charges resulting from the delayed handling of imported fuel, “said Wanga.
” We assure the House of Representatives that the committee is committed to its mandate and would expedite the process. “
National Assembly spokesman Justin Muturi accepted the request, describing it as fair, especially given the new information.
” This is a fair request. I have seen draft proposals that recommend certain pieces of legislation. The committee made some recommendations that I’ve read, “Muturi said.
Sources on the committee told the star that they recommended tentative amendments to the Petroleum Development Act 1991.
The draft law, which is in the works, provides for the fuel tax to be administered by a body similar to the one that administers the road maintenance tax.
MEPs also want the law to be amended to specifically provide that the levy will be spent on stabilizing fuel prices and developing common facilities for the transport of oil products.
The committee has also reportedly sought to review the formula used in the distribution of funds from the fuel levy the oil used is a marketing company.
The star also stated that MPs want the National Treasury to repay the A $ 18.1 billion immediately that were diverted from the Petroleum Development Levy Fund.
The MPs want the regulation on taxes, levies and fees to be decided in plenary – by the whole House, and not the committees that ratify the legal acts .
Sources said the Ministry of Oil and EPRA were being asked to review the current pricing formula.
MPs during the public participation called for the KPA to complete the Kipevu Oil Terminals II accelerated to eliminate mooring costs.
Matungulu MP Stephen Mule, who asked Parliament to review the formula to allow citizens the relief, supported the call for more time.
“I agree with the committee and I believe it is for the good of the country to find a permanent solution,” he said.
The Garissa Community MP, Aden Duale, called for further investigation, for which the Treasury Department the fuel tax issued.
“I want the chairman to investigate and confirm that between July last year and September this year, Shr 38.6 billion. have been confiscated and only Sh8 billion has been used to stabilize fuel prices, “he said.
Suna East MP and Minority Whip Junet Mohamed vouched for fuel prices are set by market forces and say price controls are an old way of fixing things.
“It was introduced because there were few dealerships. The economic sector is now littered with many actors. It is the government’s responsibility to create an environment in which companies are fairly competitive, “said Junet.
Nyando MP Jared Okello urged cabinet secretaries not to make public comments on the fuel inspection, and referred to the risk of Kenyans conflicting with MPs.
Wajir South MP Mohamud Sheikh said, “Unless we conduct a thorough investigation to determine the demurrage failures in my opinion are the cause of the fuel prices. ”
Edited by Kiilu Damaris