The Star (Nairobi)

Kenya: Cotu Blames Cartels for Fuel Hike

The Central Organization of Trade Unions, COTU (K) has said that the recent increase in the price of fuel is part of the scheme by the oil industry cartels to exploit the current political transition period.

Cotu Secretary general Francis Atwoli the cartels are taking advantage of the absence of a substantive government for fear of the uncertainty that awaits them and also denying the exchequer the much needed revenue.

The Energy Regulatory Commission (ERC) on Thursday announced a Sh4.12 hike in the price of super petrol. Kerosene and diesel also increased by Sh2.61 and Sh1.17 respectively.

"Cotu regrets that the ERC has been overwhelmingly compromised by the cartels right from its formation and often has taken lead in duping Kenyans through piecemeal reduction in fuel prices averaging to Sh1, only to increase by a margin of up to Sh 5,"he said in a statement.

"Such increases end-up lining pockets of a few individuals as opposed to reaching the exchequer through the Kenya Revenue Authority," Atwoli said.

ERC cited increase in international fuel prices as the reason for the pump price increases.

It said Murban crude rose by 3 per cent from $112.05 per barrel in January to $115.40 per barrel in February. The average landed cost of Super petrol had risen by 5.68 per cent, 3.38 per cent for diesel and 8.15 per cent for kerosene.

Cotu has asked top government officials- both the current and elect to intervene and be vigilant through this transition period.

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