Cotu boss Francis Atwoli has threatened to sue the government over Wednesday’s hike in fuel prices.
The secretary general condemned the increase saying this will overburden Kenyans who are already struggling with the high cost of living.
While noting that majority of Kenyans are grappling with high transport costs as operators hike fares in the ongoing Michuki rules
crackdown, Atwoli said increasing fuel prices will worsen the situation.
"It is only in Kenya that cost of petroleum products can go up with skyrocketing percentage and the government allows it," Atwoli said in a statement.
The Energy Regulatory Commission (ERC) on Wednesday reviewed fuel prices by over Sh2.50 per liter.
Super petrol jumped Sh2.38 to retail at Sh118.11 in Nairobi, diesel went up by Sh3.11 to trade at Sh112.83 while Kerosene increased by Sh2.99 to sell at Sh111.83. This was the highest jump in fuel prices in recent months.
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In last month’s review, super petrol dropped by Sh1.06 while diesel and kerosene increased by Sh1.60 and Sh0.43 respectively.
Ordinarily, the basic side effect of high gas prices is that discretionary spending goes down as people spend more on fuel than other goods and services.
Retailers are further squeezed as they are forced to pass on the expenses associated with increased manufacturing costs to consumers.
Atwoli said even without the oil ores in Turkana, there would still be no justification for the government to increase fuel prices by such margins.
He claimed the government was indirectly implementing the 16 per cent VAT on fuel products that was reviewed to 8 per cent by President Kenyatta after public uproar.
Atwoli appealed to the president to reconsider "this awkward situation of impractical increase" or face legal action.
"COTU will convene an all affiliate meeting next week to plan for a way forward that will make the government review their increases that affect all Kenyans."
"One of the actions we will be dealing with is either take the government to court or press government through nationwide protests,"” Atwoli said.