New fuel taxes bad for citizens: ODM
An attendant at a Nyeri petrol station sells kerosene to a customer in the past. Petrol, diesel and kerosene prices will increase tonight by Sh2.20, Sh1.27 and Sh1.03 a litre respectively despite a 9 per cent drop in crude prices, the Energy Regulatory Commission said on August 14, 2016. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP
What you need to know:
- ODM Chairman John Mbadi said there was no justification for the increase since the current collection of Sh40 billion has not been properly utilised by the Kenya Roads Board.
- He also added that a higher diesel price will also raise the cost of farming, with direct consequences on the prices of flour, cereals and food in general.
Orange Democratic Movement has warned that an increase in fuel taxation will adversely affect Kenyans hence asking the government to rescind its decision.
ODM Chairman John Mbadi said there was no justification for the increase since the current collection of Sh40 billion has not been properly utilised by the Kenya Roads Board.
The government plans to raise about Sh60 billion annually from fuel levy to fund more road construction projects. The higher rates, which come into effect at midnight on Thursday, will see Sh6 added to the price of a litre of petrol and diesel.
Mr Mbadi told a press conference in Nairobi on Sunday that there was a category of Kenyans that were not affected, however much prices rose.
“Our roads, especially in the rural areas, are not maintained at all, even with the huge collection,” said the Suba Member of Parliament.
He warned that the effects of the increased prices are monumental as they will have a direct effect on transport costs.
"From next week, public service vehicles will most certainly raise fares. This will worsen life for low-income earners, the jobless and small-scale traders," he said.
He added that an increase in prices of diesel will not only shoot up the cost of transportation but also manufacturing of most products.
"As at now, many enterprises rely on diesel generators because of frequent power outages and expensive electricity."
He also added that a higher diesel price will also raise the cost of farming, with direct consequences on the prices of flour, cereals and food in general.
He further warned that petroleum prices will certainly rise again as the VAT levy introduced in the 2014/2015 Financial Year, and which had been suspended for two years will take effect from October 6.
