Officials from the Energy and Petroleum Regulation Authority (EPRA) on Tuesday, June 6, were unable to explain how the Government-to-Government fuel deal President William Ruto signed with Saudi Arabia will benefit the country.
Appearing before the National Assembly Public Investments Committee on Commercial Affairs and Energy (PICCAE), the authority was tongue-tied when asked to pinpoint the benefits of the government's decision to bypass the need for dollars in procuring oil.
The committee's chair David Pkosing (Pokot South MP) placed the officials on the hot seat over the continued rise in prices despite the deal signed in early April.
“What was the purpose of the government-to-government (G to G) program? The dollar is affecting our fuel prices and EPRA isn't answering to Kenyans,” posed Pkosing.
He argued that the deal was aimed at cushioning Kenyans and mitigating fuel price fluctuations but it resulted in an increase in prices.
"Representatives of EPRA appearing before the Committee expressed their inability to adequately address the inquiries regarding the matter," the committee concluded at the end of the sitting.
Notably, Ruto selected three foreign firms to supply fuel to Kenya, Amarco, Abu Dhabi National Oil Corporation Global Trading (ADNOC), and National Oil Company (NOC).
"As a country, we can buy fuel using local currency and from this month of April, all our fuel marketers will be able to use the shilling to buy our fuel products," Ruto declared.
On April 27, Energy Cabinet Secretary Davis Chirchir explained that the existing stock of fuel in the market meant Kenyans cannot enjoy imported oil in the G to G deal.
Chirchir announced that the oil would be available before EPRA made the monthly review.
However, on May 14, the authority increased the prices, of Super Petrol by Ksh3.40 per litre, Diesel by Ksh6.40 per litre, and Kerosene by Kshs15.19 per litre bringing the cost to Ksh182.70, Ksh168.40, and Ksh161.13 respectively.
Meanwhile, during the committee meeting, the members discussed a petition filed against the appointment of Daniel Kiptoo as EPRA Director General.
According to the petitioner, Kiptoo was unfit to hold the position accusing him of participating in the appointment.
Ugunja MP Opiyo Wandayi pinpointed the board's failure to consider internal management candidates for the position, raising doubts about the leadership's competence.
"He sat on the same board that was deliberating and making decisions about a process he previously knew he would take part in. Astoundingly, the board and the respondent did not make a full disclosure of the matter raising an undisclosed issue of conflict of interest," read part of the petitioner's affidavit.
