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{
    "id": 36215,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/36215/?format=api",
    "text_counter": 338,
    "type": "speech",
    "speaker_name": "Eng. M.M. Mahamud",
    "speaker_title": "The Assistant Minister for Energy",
    "speaker": {
        "id": 373,
        "legal_name": "Mohammed Maalim Mahamud",
        "slug": "mohammed-mahamud"
    },
    "content": "Mr. Temporary Deputy Speaker, Sir, whereas it is desirable to look for fuel subsidy, I think the benefit of subsidy, as mentioned by colleague, will normally accrue to high income people and not the poor person. Elsewhere, where subsidies have been tried, I think the majority who benefit are people who are in the high income bracket and not the poor person. Any case of subsidy, although, sometimes, it can be evenly distributed, can be misdirected from the household sector to the transport sector. The problem of high oil prices is something that is universal and global. We need to see how we can control prices. But I think subsidy is not the option. I find it difficult to understand how we can implement the subsidy. Subsidy is normally for the productive sector; agriculture and manufacturing. But the consumer sector--- Like if you subsidize the petroleum industry, I think it will distort our economy and give us problems. We, in the Ministry of Energy, will like to come up with any method that will help us to reduce the price of fuel. One area which has been suggested by my colleague here is the issue of reducing tax. However, we know that the biggest producer of tax in this country is fuel. From the fuel levy we get about Kshs9 per litre of petroleum."
}