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{
    "id": 1102482,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1102482/?format=api",
    "text_counter": 51,
    "type": "speech",
    "speaker_name": "Kipipiri, JP",
    "speaker_title": "Hon. Amos Kimunya",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "First of all, I would like to ask the Committee to look at the global trends. Last year, when COVID-19 hit in March 2020, production ceased in China and other countries. Therefore, the cost of fuel per barrel globally fell to almost US$9, the lowest ever in history. Even here, fuel costs fell almost to the floor and since last year, activities have been reinvigorated across the world. As of last month, the indicative cost per barrel was US$73. So, from US$9 last year to US$73, plus the decline in our exchange rates from Kshs101 to now Kshs111, the combination of all these means that the cost before you in my own estimate, is about Kshs86. There is nothing we can do about this. The balance is obviously the fuel levy which we use in our constituencies to do the roads. The Petroleum Development Levy is used to subsidise the VAT on fuel, which is projected to generate Kshs29 billion in the budget and the money has been allocated by this very House towards financing education, roads and other issues. Even as the Committee looks into this, they also need to look at the impact of global prices which are escalating going forward. The projections are that pricing will go up anyway with or without us changing the VAT. Another thing that I want the Committee to look at and advise on is the impact of changing our taxation, especially VAT. When we remove Kshs29 billion from the budget, what other items will need to be sacrificed because this amount will be lost anyway? The other thing is that in the last two reviews when fuel prices were going up and this was done by the authority set up by Parliament, the only reason why fuel prices were not so high is because the Petroleum Development Levy Fund was used to subsidise the cost. I have indication that there is active consideration for further subsidies going forward. Of course, this can only be done within the framework of the next review because this is what the law says. Petroleum pricing can only be done on 15th. We passed this law and the people dealing with petroleum are bound by The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}