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{
    "id": 36227,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/36227/?format=api",
    "text_counter": 350,
    "type": "speech",
    "speaker_name": "Dr. Oburu",
    "speaker_title": "The Assistant Minister, Office of the Deputy Prime Minister and Ministry of Finance",
    "speaker": {
        "id": 194,
        "legal_name": "Oburu Ngona Odinga",
        "slug": "oburu-odinga"
    },
    "content": "Experience elsewhere indicates that subsidy on fuel prices usually does not succeed and is costly to the Government. This is because:- (a) Most benefits from universal subsidies accrue to high income households. Universal petroleum subsidy benefits are mostly regressively distributed with over 80 per cent of total benefits accruing to the richest 40 per cent who use petrol, diesel and Liquefied Petroleum Gas (LPG). (b) Even for kerosene subsidy, whose benefit is, at least, evenly distributed across all income groups, it is likely that it will be misdirected from household sector to transport sector through mixing with diesel and cross-border smuggling unless a harmonized treatment is undertaken within the East African Community region as a whole. Ultimately, the neediest people may never get the product."
}