MP Ndindi Nyoro slams Gov’t over fuel hike, offers proposals on how to slash prices by Ksh.27

Kiharu Member of Parliament Ndindi Nyoro has proposed a raft of measures he says could lower fuel prices by at least Ksh.27 per litre, amid growing concern over the rising cost of petroleum products.

In a press statement on Wednesday, Nyoro accused the government of failing to provide a solution to the fuel crisis, terming the recent price increments as “unacceptable.”

The MP argued that Kenyans are currently paying more for fuel despite lower global oil prices compared to 2022.

“Kenyans take note of the fact that global oil prices were higher in 2022, topping $115 per barrel in May 2022, yet pump prices never exceeded Ksh.160 per litre of petrol… Global oil prices are cheaper now… Why are Kenyans being made to pay more?” he posed.

He warned that failure by the government to clearly communicate the composition of fuel pricing could trigger hoarding within the supply chain.

“It has been let bare and apparent that the Government has never been keen or committed to providing a solution to the crisis that has been imminent since the end of February. The drastic increment in fuel prices is unacceptable; a more humane variation must be made by reducing the pump prices now,” he said.

 “Failure of the government to communicate clearly about the composition of the pricing may likely lead to supply chain hoarding, as dealers are not sure who is paying how much and for what.”

The outspoken MP termed the current subsidy allocation of Ksh.6.5 billion insufficient, urging the State to commit at least Ksh.10 billion from the Fuel Stabilisation Fund, which he claims holds about Ksh.20 billion.

“The amount given for subsidies is too little… The government must commit at least Ksh.10 billion into subsidies in the month up to May 14th,” he stated.

On taxation, the legislator downplayed the proposed VAT adjustment, calling for a full exemption of fuel products during the current period.

He also called for the removal of the Ksh.7 fuel levy introduced in 2024, saying the combination of tax and subsidy adjustments would significantly reduce pump prices.

“The VAT reduction of 3% is a dry joke taken too far. Fuel products must be VAT-exempt during the intervening period. The government must immediately revert the VAT to 8% as it was before 2023,” he said.

“Reduce Ksh.7 from the fuel levy that was added in 2024. Reduce VAT by an additional 5% immediately, which will be approximately Ksh.8 per litre. Grant an additional Ksh.5 billion in subsidies… which will be approximately Ksh.12 per litre. This should translate to a reduction by Ksh.7 + 8 + 12 = Ksh.27.”

Nyoro also questioned the government-to-government (G2G) fuel importation framework, alleging lack of transparency.

He insisted that fuel prices must be reviewed immediately, warning that delays would continue to strain the economy.

“The arrangement is a scam and a profit machine for leaders. They must explain to Kenyans why they are profiting while Kenyans are bearing the pain,” he said.

“Kenyans cannot wait for another month for the revision to be done. Reduction in fuel prices must be done now without delays. Time is of the essence. Our economy runs on fuel.”

President William Ruto on Wednesday defended the hike in fuel prices in the country, saying the government was forced to pay out Ksh.6.5 billion to cushion Kenyans against exorbitant fuel prices, as witnessed in several countries across the globe.

The President further announced that the government will reduce fuel VAT from 16 per cent to 8 per cent for the next three months to cushion consumers during the current phase.