Petroleum Ministry is on the spot for illegally charging levy on diesel.
This is after the National Assembly committee on Delegated Legislation declared the Sh5.40 levy on a litre of diesel illegal.
In July 2020, Petroleum Cabinet Secretary John Munyes increased the levy for different fuels, including super petrol.
In the legal notice, Munyes said the money collected through the levy would be used in the stabilisation of local pump prices to cushion Kenyans from sharp spikes.
However, the ministry ommitted diesel in the notice but the government has been collecting the Sh5.40 on both diesel and petrol.
The committee has recommended that MPs reject the legal notice in what could force the energy regulator to drop the levy from the monthly review of diesel prices.
“The committee recommend to the House to annul the amendment order in entirety for contravening Section 11(1) and 4 of the Statutory Instruments Act, 2013, being out of the statutory timelines set out in Section 11 and lack of demonstration of public participation,” the committee says in a report.
The regulations were meant to fix a legal breach that omitted diesel from a law that allowed the State in July last year to collect the Sh5.40 Petroleum Development Levy.
The committee noted that the mistake by the ministry did not warrant the issuance of a different petroleum development levy order to amend the 2020 order.
Despite collecting excess money through the levy, the government has failed to stabilise fuel prices.
Currently, a litre of super petrol is retailing at Sh134.72 in Nairobi, a six per cent increase from Sh127.14 per litre while diesel is retailing at Sh115.6 per litre from Sh107.66, while kerosene is retailing at Sh12.97 per litre.