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{
    "id": 36198,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/36198/?format=api",
    "text_counter": 321,
    "type": "speech",
    "speaker_name": "Mr. Magerer",
    "speaker_title": "The Assistant Minister for Energy",
    "speaker": {
        "id": 51,
        "legal_name": "Magerer Kiprono Langat",
        "slug": "magerer-langat"
    },
    "content": "It is wrong for us to be working and coming up with prices and say that they will go up, because the world market prices have gone up as if we, as a Government, are completely helpless. Whereas the logistics of trying to reduce the prices needs to be well thought again, I want to encourage those of us in Government, and I am happy my good friend from the Treasury is here, to be able to take very seriously arguments that have been advanced, because this is the only way we can say we are doing the job that we are supposed to be doing. I talked about streamlining the oil sector. As a Government, we still have issues with the pumping capacity and the general transportation of fuel upstream which involves taking fuel from the source to the consumer. Much of those costs have allowed room for oil marketers to make more money. It is not late for us to review the formulae of getting the price correct. If you look at the current formula which is in place with the Energy Regulatory Commission (ERC) which was done by our Ministry, it gives us a chance to learn other issues. We have actually made sure that the marketers retain their profits regardless of other market conditions. For example, if the prices come down or go up it is not the problem of the marketers because the formula guarantees them their profits. So, whichever way it goes, they are going to put no effort to compete objectively and competitively with others. So, the issue of market segmentation is no longer there. The cost of fuel in Umoja, for example, and the cost of fuel in up market estates like Karen is just the same. So, it does not make much difference because the market is assured that the formula that has been given by the Government will guarantee the profit margin. It is my plea that we also reconsider the formula so that we give a competitive advantage to the"
}