Oil Money

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I often wonder what goes on in the minds of the people who have to set fuel prices. 

What factors do they consider? 

Are they all weighed equally, or is it rather Orwellian (in that some are more equal than others)? If so, which factors are given greater significance? Perhaps the political promises made by the incoming administration? Or the economic consequences of rising fuel prices? What about the interests of Oil Marketing Companies? Are they weighed equally against the concerns of the citizens? Those for whom fuel is absolutely necessary for living and, are, therefore, left to stomach a Ksh 40/L increase in the last 6 months.

Without this information, it is easy to envision EPRA - Kenya's regulatory body tasked with setting fuel prices - as a villain in our story. The enemy of our collective progress, and one of the reasons why life has gotten harder and harder. In fact, EPRA has become the guarantor of life's future difficulties. 

It doesn't help that EPRA, in an act of pathetic, albeit understandable, cowardice, waits until midnight to release the new fuel prices for the month. They used to release the prices a couple of days, at most, beforehand to allow consumers to adequately plan for the hike. Now, they'd rather we are assaulted by a higher cost of living, while the people responsible for the hike get to evade accountability for a while longer. 

Part of me wonders if this goes beyond a mere act of cowardice and if it is malicious as well. Maybe it isn't just about evading responsibility by limiting the force of our frustrations. Maybe, it is about evading accountability by activating the quiet terror that follows rising prices. As we all scramble to find room in our budgets to meet our needs and wants, we are far too occupied to seek justice. We are far too distracted to demand an explanation and a solution. You see, the problem is not that the price will increase. This is just an inevitability. The problem is that nothing is being done about it. Or, at least it feels like it. 

Take, for example, the government's decision to pursue a government-to-government arrangement to import petroleum products. When the agreement was finalised in March 2023, it took only two days to award tenders to three local companies. Two days, when tendering process, on average takes months. The entire process was so rushed that even Parliamentarians raised concerns. They asked why only three companies had been selected when the average number of oil importers has been 9. They wondered how, given that these three companies were nominated by Gulf State entities to be their local traders, local agencies were supposed to hold them accountable. counterparts. Furthermore, the measure itself is a stopgap; designed to free up dollars that would have been used on fuel, elsewhere. But we have not heard about what happens next if, indeed, this is temporary. The Shilling is still haemorrhaging value against the Dollar. The cost of fuel continues to rise. Life is still difficult. 

As a result, it feels like the government is playing fast and loose with our livelihoods. It feels like they do not care. To the point where it may not matter, what factors are used to set the price of fuel; intellectual curiosity be damned.



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