Busia Senator Okiya Omtatah, on Saturday, July 1, gave the Energy Regulatory Authority of Kenya (EPRA) an ultimatum to lower fuel prices or face off in court.
Speaking to Kenyans.co.ke, the lawmaker confirmed that he had reached out to EPRA Managing Director Daniel Kiptoo Bargoria after the regulator increased a litre of super petrol to Ksh195, diesel to Ksh179.67 and kerosene to Ksh173.44.
The Busia Senator indicated that he had directed EPRA to revert fuel prices to match June 14 review. Before the hike, super petrol retailed at Ksh182.40, diesel at Ksh167.28, and kerosene at Ksh161.48.
Failure to heed his call, the first-time senator warned that he will file a legal suit against the energy regulator.
"I talked to the MD and I hope he will act. We focused on the court orders that suspended the Finance Act and they gave an injunction against any part of it.
"I have told him if they ignore, I will file a contempt proceeding against them. I will take them to court to be punished for disobeying court orders," Omtatah stated.
The lawmaker argued that he had informed EPRA of the two orders barring the government from implementing the Finance Act. The activist maintained that implementing any section of it will be tantamount to contempt of court.
EPRA increased fuel prices to Ksh195 after President William Ruto signed the Finance Bill 2023 into law. In the Act, the government doubled value added tax imposed on fuel products from 8 to 16 per cent.
"Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol, Diesel and Kerosene have been revised from 8 to 16 per cent effective July 1, 2023.
"Accordingly, the Energy Petroleum Regulatory Authority (EPRA) has recalculated the maximum pump prices that will be in force from July 1 to July 14, 2023, taking into account VAT at 16 per cent," read part of the statement by EPRA.
Azimio, led by Raila Odinga, proposed amendments to that section but failed to defend it in Parliament due to Kenya Kwanza's dominance.
The opposition warned that doubling fuel VAT to 16 per cent will affect the cost of living in the country. However, Kenya Kwanza defended the increase noting that it will help the government raise funds to help in road construction and rehabilitation.
"This 8 per cent we are adding will give us about Ksh50 billion shillings and begin to deal with the problem of roads in our country. To balance it out, I have removed on the same fuel, 3.5 per cent road development levy, 2 per cent of IDF, and 8 per cent VAT on gas," President Ruto stated.
