Cartels making it hard for ERC to lower oil prices, claims MP
18 January 2016, 14:09
Nairobi - An ODM nominated MP, Isaac Mwaura has claimed that powerful cartels in the energy sector influence oil prices in Kenyan market making consumers to pay more despite reduction in cost by oil producing countries.
Mwaura said the cartels particularly multinational oil companies have held hostage the Energy Regulation Commission (ERC) and Kenyan market at large in oil pricing making it difficult for consumers to enjoy reduced cost in international markets.
"Oil prices are still high in Kenya despite depreciation in international market. This is a serious issue and matter of urgency to be addressed," said Mwaura.
"Kenyans are really under the york of cartels mostly international companies which not only market oil but also explore and drill. These powerful cartels have even penetrated the COMESA market they must be approached in oil pricing," he added.
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Mwaura further said there is need for the government to protect its citizens against exploitation by such cartels whose beneficiaries receive kickbacks for ensuring oil prices don't reduce drastically.
"Whenever there is depreciation in oil prices in international markets such as US, in Kenya the cost reduces by one shilling because cartels control the pricing," said Mwaura.
He said SRC should consider lowering oil prices further following the lifting of sanctions against Iran, the key oil producer, by European Union and US.
The MP asked the Jubilee administration to weed out cartels not only in oil sector but also in tea and coffee for the benefit of its citizens.
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