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{
    "id": 1370170,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1370170/?format=api",
    "text_counter": 252,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": " Hon. Temporary Speaker, I would like to make a Statement regarding the stabilisation of fuel prices and the expenditures on fuel subsidy and fuel stabilisation. In April 2021, the Government of Kenya introduced a pump price stabilisation mechanism to cushion consumers from the high pump prices following escalation of global prices post COVID-19 recovery. This was exacerbated by adverse geo-political situations at the time brought about by the Russia-Ukraine War, which affected the local market in as far as the supply and cost of petroleum products was concerned. The Government’s pump price stabilisation mechanism was implemented in the pump pricing cycle starting from 15th April 2021, resulting in the emergence of the fuel price subsidies. Between 15th April 2021 and 14th May 2023, the Government utilised funds from both the Petroleum Development Fund and the Exchequer to pay the subsidy amounts. There were witnessed delays in remitting of the subsidy payments to the oil marketing companies, leading to cashflow constraints and payment arrears, which in turn had a negative effect in the security and supply of the petroleum products. On assumption of office by this administration on September 2022, the subsidy on super petrol was eliminated, while subsidies on diesel and kerosene were progressively reduced. The Petroleum Development Fund is established under the Petroleum Development Fund Act of 1999 and revised in 2006. This law was enacted to provide the establishment of a petroleum levy to feed into the Fund. The Act provides that there shall be paid out from the funds such money as is necessary for the development of the common users facility for the distribution or testing of oil products and for matters relating to oil industry as the Cabinet Secretary may direct, provided that the funds are not used for purposes of competition with the private sector. Pursuant to the provisions of the Act, the administrator of the Fund is the Principal Secretary of the National Treasury or any person appointed by him in writing for that purpose. The Act further stipulates that the expenditure from the Fund shall be unlimited to the annual budget, which shall be submitted to the National Treasury for approval before the beginning of the financial year to which the budget relates. In the event that budgetary resources in the Fund are not sufficient to finance the stabilisation of prices, the National Treasury shall submit a supplementary budget to regularise any payment for fuel subsidies over and above the budgetary resources for the fund. 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"
}