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{
"id": 235669,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/235669/?format=api",
"text_counter": 258,
"type": "speech",
"speaker_name": "Mr. Ojode",
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"speaker": {
"id": 197,
"legal_name": "Joshua Orwa Ojode",
"slug": "joshua-ojode"
},
"content": "No, Mr. Temporary Deputy Speaker, Sir, let me go on. I do not want to dwell on that. According to the research I have done, all oil firms should be allowed to make a maximum profit of Kshs5 per litre. I have a tabulation which I want to share with my colleagues. The cost of importing super petrol, together with excise duty, road maintenance levy of Kshs5.80 and petroleum development levy of Kshs0.40 totals to Kshs26.095 per litre. In February, 2006, the cost of importing super petrol to Mombasa was Kshs35.23 per litre. The transportation cost was Kshs1.80 per litre. That gives us a total of Kshs37.030 per litre. If we add the delivery cost of Kshs1, it totals to Kshs38.030 per litre. The cost of super petrol in Nairobi, including all the taxes and expenses, is Kshs63.125 per litre. The pump price at that particular time was Kshs74 per litre. Now, it is Kshs80. That means that the profit margin which the Shell Company is getting is Kshs10.875 per litre. There is nothing wrong for an oil company to make a profit of Kshs5. Given that small traders are making a profit of Kshs2.50 per litre, why should the Shell Company make a profit of Kshs10.875? Mr. Temporary Deputy Speaker, Sir, the excise duty on diesel is about Kshs10.35 per litre. If we add the road maintenance levy, petroleum development levy and all the other taxes, diesel will cost us Kshs16.50 per litre. The cost of importing diesel to Mombasa in February was Kshs34.30 per litre. If we add the transportation cost of Kshs1.80, we get a total of Kshs36.10 per litre. If we add the cost of delivery to Mombasa town, it will come to Kshs37.10. The cost of diesel in Nairobi, including taxes and other expenses, is Kshs53.54 per litre. The pump price for diesel as at February, 2006, was Kshs64 per litre. So, the profit margin the petroleum companies made was approximately Kshs10.50 per litre. At the moment, the cost of diesel is Kshs67 per litre. Mr. Temporary Deputy Speaker, one month ago, the oil companies tried to hoard this commodity with a view to increasing their prices. What is it that we, as a country, can do to control prices of fuel? We must do something. For example, in South Africa and the United States of America (USA), fuel prices are regulated. It is important for us to think of ourselves as a country. The majority of those who own these multinational oil firms are non-Kenyans. They do not care what happens to Kenyans. If we brought in new machines to our Mombasa oil refinery plant, I will have losses here and there. The cost of transporting commodities is high. The people who do casual jobs in Industrial Area, for example, cannot afford transport costs. They have to walk long distances to their work places. If we increase the cost of any oil product, we will affect the majority of Kenyans. Our forests have been depleted because there was uncontrolled logging. We must regulate and tame these petroleum companies. They knew that the Minister does not have powers to do so. But when this Motion is passed, they will tow the line. They will go back to the drawing board and check themselves. This is because the Minister will have the powers to set the maximum prices and fix them. Mr. Temporary Deputy Speaker, Sir, you spend up to Kshs10,000 on fuel to travel to your constituency."
}