Omtatah Issues Warning To EPRA After Increasing Fuel Prices
Omtatah revealed that he reached out to EPRA’s Managing Director, Daniel Kiptoo Bargoria with the aim of compelling him to reverse the change in fuel prices
admin
Busia senator, Okiya Omtatah on Sunday, July 2 gave the management of the Energy and Petroleum Regulatory Authority (EPRA) an ultimatum to obey a court order that stopped President William Ruto's government from effecting the Finance Act, 2023.
In a tweet, Omtatah revealed that he reached out to EPRA’s Managing Director, Daniel Kiptoo Bargoria with the aim of compelling him to reverse the change in fuel prices pending the hearing and determination of his case.
The Busia senator seemed to wonder why the agency went ahead to implement the new Value Added Tax (VAT) on fuel despite the court's conservatory order that suspended the implementation of the provisions of the Finance Act 2023.
New fuel prices as announced by EPRA on June 30, 2023. /VIRALTEAKE
He warned that if EPRA failed to adhere to court orders, he would take action against them for disobeying the court.
"I talked to the EPRA MD and we focused on the court orders that suspended the Finance Act and they gave an injunction against any part of it. Told him if they ignore, I’ll file contempt proceeding against them for disobeying court orders," he tweeted.
Following a petition by Omtatah, the High Court stopped the law from taking effect on Saturday, July 1. The law entailed the rise of VAT on fuel from 8% to 16%.
However, moments after the ruling, EPRA announced the current fuel prices in line with the new fuel VAT. Super Petrol thus retails at Ksh195.53 per litre, Diesel Ksh179.67 and Kerosene Ksh173.44 per litre in Nairobi.
"Pursuant to the Finance Act, 2023, VAT on Super Petrol, Diesel & Kerosene has been revised from 8% to 16% effective 1st July 2023. Accordingly, EPRA has recalculated the maximum pump prices that will be in force from 1st to 14th July 2023 taking into account VAT at 16%.
"As a result, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel & Kerosene increase by Ksh13.49, Ksh12.39 and Ksh11.96 per litre respectively," EPRA stated in part.
EPRA's announcement as well as the court order suspending the Finance Act generated massive confusion across the country on whether or not EPRA respected the High Court orders in line with the Act's suspension.
Omtatah had moved to the High Court to challenge the contentious Act before it was assented into Law by President William Ruto, arguing that the bill which generated uproar across the country is unconstitutional and thus sought the help of the court.
“This matter coming up on June 30, 2023, for directions on the notice of motion dated June 29, 2023, before Honourable Justice Mugure Thande upon considering the same, it is hereby ordered that the application be served today (June 30, 2023) upon all parties.
“That I am satisfied that the Application meets the test for conservatory orders and I do grant prayers 2 and 3 of the Application until July 5, 2023, when the matter is scheduled for mention for directions,” read the ruling in part.
Justice Thande ordered the petitioner to serve all parties including Treasury Cabinet Secretary (CS) Njuguna Ndung'u before the end of the day, Friday, June 30, 2023.
Furthermore, she also ordered the respondents to file their responses by Tuesday, July 4, after which the High Court will enlist a hearing date.
