Former South Mugirango MP Omingo Magara has criticised ODM leader Raila Odinga after he protested the recent increase in fuel prices.
Magara an ardent supporter of Deputy President William Ruto in a Tweet said it was shameful for the former Prime Minister to pretend to condemn the hike in fuel prices when he was the one who mobilised legislators allied to him to pass a bill that put an 8% Value Added Tax (VAT) on petroleum products in 2018.
He further said it was so insincere for the opposition leader to mourn with Kenyans who are suffering from the problems that was partly created by Raila himself.
“Shameful! While defending the Handshake romance, you mobilised your Voting machines to pass VAT on Petroleum Products. Upon realization of err & Hustlers were a target by owners of Capital, you now want to mourn with them on pretext of understanding their pain. Wajinga Wameisha Kenya,” Magara said.
On Thursday, September 16, Raila Odinga called on the Energy and Petroleum Regulatory Authority (EPRA) to lower the price of fuel.
“Kenyans who have been struggling to put food on the table since the onset of the pandemic now stand to have their collective plight worsened by the increased fuel prices. The prices should be lowered immediately to cushion the ordinary Wanainchi,” Raila said in a Tweet.
This is despite the fact that in 2018, Raila Odinga mobilised Member of Parliament affiliated to the then National Super Alliance to back the finance bill 2018 which sought to introduce 8% VAT on petroleum products, which has partly been blamed for the high fuel prices witnessed in Kenya.
How price of petrol is determined
A liter of petrol arrives at the port of Mombasa at KSh 57.53 per liter (thi price varies depending on the cost of crude oil in the international market) before taxes, levies, and other costs are factored in to push the price up.
For instance storage and distribution costs amounting to KSh 4.41 per liter, bringing the cost of a liter of petrol to KSh 61.9.
Importers put a KSh 7 margin per liter of petrol pushing the cost to KSh 68.9, even before it gets to be distributed around the country.
Dealers charge a KSh 3.89 margin per liter of petrol bring the cost to KSh 72.83 per liter of petrol.
Government taxes and levies (excise duty, VAT, road maintenance levy, development of railway network as well as petroleum development levy) amounts to 45.37 per liter of petrol, pushing the cost of fuel to KSh 118 per every liter of petrol.
When the Energy Regulatory Commission factors in variable costs like the cost of international crude oil as well as foreign exchange rates, the price of all petroleum products becomes variable
The Energy Regulatory Commission recently on September 14, announced new historic-high fuel prices. ERC set the price at KSh 134 a liter for Petrol, diesel at KSh115.60, and kerosene at KSh110.82.
