I write on behalf of Parliamentary Caucus on economy and business. The caucus was established in 2019, under the provisions of the House rules to, among other matters, propose policy and legislative interventions to the ailing economy and business environment; and complement the Departmental Committee on Finance and Planning and the Budget and Appropriations Committees’ mandates in a bipartisan manner in executing their core mandate.
I refer to a letter addressed to you by the Oil marketing Companies (OMCs) on the above subject matter where they urge you to put pressure on EPRA to maintain high petroleum product prices at this time when the world prices are at the lowest.
If their request is granted as requested, members of the public will be subjected to exorbitant fuel prices that will escalate to high cost of living as commodity prices will also rise at this time when most people have lost their jobs or means of livelihood.
The cost of public transport has already shot up due to the COVID19 requirement of social distancing. The Nation is eagerly waiting for fuel price reduction in tandem with the world prices to give them a relief from the current high prices.
It is worth noting that the same OMC's blatantly refused to go by EPRA’S recommendations on product pricing. This was done after EPRA conducted a study of cost of doing business and recommended the margins that each sector player of the value chain should get.
Some of the country's major OMC's flouted this requirement and went ahead to eat into the margins of their petrol station dealers margin as EPRA watched from a distance claiming it cannot interfere with private commercial agreements despite the petrol station dealers being unable to remain afloat.
These two incidents clearly demonstrate that OMC's sole interest in the country is the abnormal profits that they ship back to their mother-countries. It is a great shame that when the country and the world at large is struggling to contain the Corona virus, the OMCs main preoccupation is to maintain their high profitability.
They want to manipulate your office and organizations under you to sanitize their immoral greed for profit.
This is therefore to urge you on behalf of parliamentary caucus on economy and business, to reject the request by the Oil marketing Companies with the contempt that it deserves for the sake of Kenyans that are currently struggling to put food on their tables.
Show them that you are beyond their art of manipulation that they have mastered. Jude Njomo, MP, Kiambu