Fuel prices are determined by market forces-Ichung'wah to Raila

Raila Odinga, the head of the opposition, has received criticism from National Assembly Majority head Kimani Ichung'wah for his desire to cut petrol costs by over Sh50.

The Kikuyu MP stated on Sunday that the market, not just the government, determines fuel pricing.

In accordance with the drop in the price of petroleum products on the global market, Raila has called for a Sh48 or Sh50 drop in the price of fuel.

"Azimio la Umoja Coalition demands that local prices should be reduced by Sh48 or Sh50," he said.

"We have information that global prices have gone down."However, Ichung'wah chided Raila asking him how he was able to determine the margin of reduction of the prices of fuel.

''I have heard him say that the prices of fuel should reduce by Sh45, but I am surprised how he arrived at the figure because the price of fuel is determined by supply and demand and the forces of the economy,'' he said.

Even though he is aware that factors other than those under the government's control affect the nation's fuel prices, Ichung'wah claimed the opposition was attempting to politicise the matter.

The price of super fuel in Nairobi stayed at Sh217.36 per litre in the one-month review released by EPRA as of November 15, although the price of diesel and kerosene decreased by Sh2.

A litre of kerosene retails for Sh203.06, while diesel costs Sh203.47.

Even though the average landing cost of imported super fuel grew by 2.81 percent per cubic metre in October, the average cost of diesel increased by 3.28 percent, and the average cost of kerosene by 6.31 percent, Director General Daniel Kiptoo stated that customers will not shoulder the burden.

"In order to cushion consumers from the spike in pump prices as a consequence of the landed costs, the government has opted to stabilise pump prices for the November-December 2023 pricing cycle.

The National Treasury has identified resources within the current resource envelope to compensate oil marketing companies," he said.

At the same time, Ichung'wah said the National Assembly will debate the National Dialogue Committee report once the house resumes from Christmas recess.

''I can confirm to you that we tabled the report in the house on Thursday and it will be ready for debate when the house resumes,'' he said.

The MP sad the MPs will ensure that the Ward development fund is enacted either in law or in the Constitution.

''All our wards must have their own money to plan for development in their wards, we will be able to debate and make sure that it is in law whether by statute or in the constitution,'' he said.

Ichung'wah said that even if the president inherited a dilapidated economy, the efforts he has put in place have started to pay off.

''We thank God and very soon the economy will be taking off, our economy now is not in a bottomless pit as we inherited it,'' he said.

He urged Kenyans to ignore the criticism from the opposition saying they had been thrown into confusion after the government's strategy to reduce the cost of living paid off.