Duale to Yatani: Where did the fuel levy cash go?

Garissa Township MP Aden Duale has demanded that National Treasury Cabinet Secretary Ukur Yatani provide details of the money the government has collected under the Petroleum Fuel Levy Fund since September 2021, as the fuel crisis continues.

In a request for information filed in the National Assembly, Mr Duale also wants Mr Yatani to provide a breakdown of reimbursements per month and the amount of money due to be paid to oil marketing companies, petroleum dealers, and small oil dealers.

“Could the CS explain the measures put in place by the government to curb the fuel crisis in the country and also ensure that Kenyans are not subjected to similar problems in future,” demanded Mr Duale.

This comes as Mr Duale, a former majority leader in the National Assembly, accused the Treasury of stalling the processing of the Petroleum Products (Taxes and Levies) (Amendment) Bill 2021.

He demanded that Energy Cabinet Secretary Monica Juma issue the government's official position on available fuel stocks in light of the ongoing Russia-Ukraine war.

The statement, Mr Duale said, should include contingent measures put in place to ensure that enough fuel is available if the war continues.

Read for the first time

The petroleum products bill was introduced and read for the first time in the National Assembly on November 10, 2021 but has stalled because Mr Yatani has not given a no-objection as required under Article 114 (2) of the Constitution.

Yesterday, Mr Duale said that the stalling of the bill has contributed to the fuel crisis.

He told the House that the fuel shortage had led to a drastic increase in prices and a public outcry.

Wholesale and retail petroleum prices have risen to historic highs, with fears that the situation may get out of control.

Documents tabled in the House by Mr Duale show that one litre of super petrol rose to Sh147.75 in Mandera, Sh144.15 in Moyale, Sh145.34 in Elwak, Sh143.19 in Kibish, and Sh134.72 in Nairobi and its environs.

Even after the Energy and Petroleum Regulatory Authority (Epra) increased the pump prices of petrol and diesel by Sh5 per litre, the government maintained the margins of oil companies at zero, meaning that dealers did not draw profits.

“The cash flow for oil marketing companies is seriously affected by incessant delays by the National Treasury to reimburse them under the subsidy programme,” Mr Duale said, adding that this has prompted dealers to hoard the little available fuel.

Although President Uhuru Kenyatta approved the payment of Sh34 billion in reimbursements to oil marketing companies, Epra had blamed delays in disbursing the fuel subsidy for the current crisis.