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{
    "id": 68203,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/68203/?format=api",
    "text_counter": 66,
    "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": " Thank you, Mr. Deputy Speaker, Sir. I wish to reply- (a) It is true that previously, I had indicated that I could not re-introduce fuel control prices which were discontinued in October 1994 because the National Economic and Social Council had previously dis-recommended such a measure. However, upon my presentation to the Council on November 19, 2010, on the prevailing high retail prices of petroleum fuel, which by any measure were above what were considered prudent procurement and marketing costs--- It was agreed that limited price control which took into account procurement, transportation and marketing costs including a trading margin should be introduced. My action which is provided for under section No.102 of the Energy Act of 2006 has therefore been informed by the recommendation made by the National Economic Social Council on November 19, 2010. (b) I am not aware that the alleged recent astronomical increase in fuel prices was due to reasons given by the hon. Member. The fact of the matter is that pump prices had consistently been set by oil companies at levels much higher than their procurement and marketing costs, including a reasonable trading margin. Such parameter could cover both imported and locally refined products. I would like to add that the cost of products generated by the Kenya Petroleum Refineries Limited (KPRL) through crude oil processing are higher than those of imported ones because of the simple nature of the refinery which generates more low value fuel/oil and lacks operational flexibility to match supply or production to demand. It is for this reason that Government is committed to refinery modernization. Demurrage related to product costs were previously caused by the failure of the oil marketing companies to agree to orderly scheduling of the vessels carrying largely transit products destined for the neighbouring landlocked countries. Mr. Deputy Speaker, Sir, I would also want to inform the hon. Member that the storage capacity at Kipevu oil storage facility is 41,773 tonnes which is much higher than what the Member has indicated as 33,454. (c) I would like to inform the hon. Member that the following urgent measures have been put in place to address the raised issues. 1. With effect from January 2011, oil imported products for Kenya and neigbouring countries will be procured through an open tender system popularly known"
}