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{
    "id": 181649,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/181649/?format=api",
    "text_counter": 269,
    "type": "speech",
    "speaker_name": "Mr. Baiya",
    "speaker_title": "",
    "speaker": {
        "id": 8,
        "legal_name": "Peter Njoroge Baiya",
        "slug": "peter-baiya"
    },
    "content": "Mr. Deputy Speaker, Sir, thank you for giving this opportunity. I wish to move a Motion under Standing Order No.18(1), asking this House to deliberate on a very important Question about the prices of oil in this country. As the House will recall, in about 2003, the pump prices of petrol in this country were about Kshs23 per litre. As we are speaking now the prices are at about Kshs97 per litre. There has been a price increase across the world, and it is generally understood that has been due the high demand for petroleum products by the growing economies of the world, especially those of China and India. Around July this year, the prices reached their peak and the price per barrel of crude oil was at US$147, and that was when consumers in Kenya were paying about Kshs108 per litre. But the price increases have stopped. Worldwide, the prices have now gone down to US$64 per barrel of crude oil. We have even seen the OPEC countries are now rushing to reduce production. So, the world prices of petroleum products have plummeted, and the world economy is shrinking. Kenyans paid very dearly when those prices were going up. The inflation levels went up tremendously, affecting all manufactured goods and inputs that had to be transported. Farmers are saying that they 3110 PARLIAMENTARY DEBATE October 29, 2008 cannot even manage to till their land because of the cost of diesel. The prices of all domestic items have gone up due to high price of fuel. Kenyans cannot afford their meals, because of the cost of food. So, the inflation that this country has experienced in the last one year has basically been oil- driven inflation. Now that the prices of crude oil have gone down by over 50 per cent, Kenyans have actually expressed concern that the price of oil have only gone down from Kshs108 to only Kshs97. That is about only Kshs10 down. This is not fair. It means that those trading in oil have a very big margin that they can reduce, but they have refused to do so basically because they enjoy monopolistic status and Kenyans have no choice. What we have seen from the Government is very dismaying, because we have only heard pleas being made, threats to control prices being issued; at times, we have seen demands or the Government officials urging the multinationals to reduce prices. The point is that those companies, be they multinationals of local companies, are in business for profits. If they are urged to do it on account of their moral considerations, I can assure you that their morality is profits. We want the Government not to look so impotent when the oil companies are going for Kenyans' throats. The Government should use the power and mandate that the Kenyan people have given it to either control prices or come up with other strategies that would effectively ensure that the drastic plummeting of oil prices in the world market is reflected in the retail prices in Kenya. Mr. Deputy Speaker, Sir, I think that the Government has power---"
}