National Treasury chief draws MPs’ ire over rising prices of fuel

National Treasury Cabinet Secretary Prrof Njuguna Ndung’u yesterday faced the wrath of Members of Parliament over the continued increase of fuel prices despite stabilisation measures being put in place.

The CS, who appeared before the Departmental Committee on Finance and National Planning, was at pains to explain why fuel prices continued to sky rocket yet the government has insisted that it has continued to control prices through the Petroleum Development Levy (PDL) and exchequer funding.

Committee, chaired by Molo MP Kimani Kuria, said it is unacceptable that pump prices have continued to increase, and demanded that the CS explains the difference between fuel subsidy and fuel stabilisation.

Ndung’u had earlier said the government had made a decision to end the subsidy programme that had been introduced by the previous administration as it was not sustainable.

Yesterday, the CS said the government was only able to pay Sh23 billion of the Sh66 billion owed to oil marketers. They halted the subsidy programme and the PDL kicked in. He added that the government was forced to securitise the Sh43 billion through treasury bills and bonds that will mature in three years’ time.

Partial disbursements

Led by the Kuria, MPs Okuome Adipo (Karachuonyo), Joseph Makilap (Baringo North), David Mwalika (Kitui Rural), Joseph Oyula (Butula), John Ariko (Turkana South) told Njuguna to table before the committee the list of oil marketers who benefitted from the subsidy, the amount of money they have so far been paid, the monies in arrears and the amounts so far collected from PDL fund.

“CS please explain to the Members what stabilisation is and what subsidy is because as of now members are not able to tell the difference. While at it, please give us a list of who was paid through the subsidy and how much we owe marketers,” MP Kuria asked.

The CS, however, said the current administration took over when the subsidy programme was going on and were being forced to pay Sh17.5 billion every week, money that was not budgeted for.

“Once we were out of the subsidy, PDL kicked in and it is the one that we have been using to subsidise fuel prices. What happens is that when we do not have enough funds in the PDL fund then the exchequer kicks in,” Ndung’u said.