Oct 21, 2021

Mawazo Writing Africa

Writing about the main

Pain at pump: How MPs plan to reduce fuel prices

Legislators are considering tax cuts to lower fuel prices, which are unlikely to drop anytime soon after a high of Sh134 for a liter.

The finance committee chaired by Homa Bay Woman Representative Gladys Wanga is trying to the mineral oil levy, which is levied on super diesel and gasoline, from Sh5.40 to 40 cents.

The levy would be levied on gasoline, diesel and kerosene if MPs should approve the proposal to repeal the Petroleum Development Levy Order , 2020, approve the same increase by Sh5.

The committee continues to try to reduce the value added tax (VAT) on petroleum products from 8 percent to 4 percent.

The MPs want the National Treasury to prepare supplementary estimates to the loss of revenue of Sh 22.6 billion. to be adjusted after the change in the tax law.

The legislature continues to want a reduction in VAT on cooking gas from 16 percent to 8 percent and expects a reduction of Sh4. 7 billion income from the tax chief.

The committee is also trying to reduce the gross margins for oil marketing companies to Sh3 from the current Sh12.

At the same time, MPs want the inflation adjustment for fuel to be lifted for the year and the same should be done every two years by the finance law.

However, the Kenyans may have to wait longer for the relief as the team led by Wanga does not yet have to submit a formal report to the August House in which the adjustments are recommended.

The representative of the Homa Bay woman said in a plenary session on Tuesday that the committee must consider new details about the mooring costs.

The mooring fee is the fee that which is based on the time it takes a ship to unload fuel at the Mombasa Port terminal for storage by the Kenya Pipeline Company.

The committee should review the factors that are staging the high fuel pricesClose Wednesday.

This would mean taxpayers may have another month or more to wait for prices to fall.

The Energy and Petroleum Regulator is releasing the Prices from October to November one day after the planned publication of MEPs’ reports.

EPRA Director General Daniel Kiptoo warned last Tuesday that prices could continue to rise given the global crude oil price.

Prices were over $ 81 (Sh8,959) on Wednesday.

There are rumors that August House may shorten the deadlines for reviewing the bill, or earliest Kenyans may be in the Jan. 14 review November remedied.

Wanga said her team had made significant progress by meeting 10 fuel stakeholders.

“The committee has received new information on mooring charges that on the fuel pr ice impact. We would like to investigate further into the charges arising from the delayed clearance of imported fuel, “said Wanga.

” We assure the House of Representatives that the committee is committed to its mandate and would expedite the process, “said the legislature.

Changes to the Petroleum Development Act of 1991 would provide that the fuel levy be administered by a body similar to the one that administers the road maintenance levy.

MPs want too Changed the law to specifically include the levy being used to stabilize fuel prices and develop common facilities to transport oil products.

The committee also reportedly conducted a review of the formula used in the distribution strived for. the money from the fuel levy to oil marketing companies.

The Star has further stated that the MPs want the National Treasury to receive the 18.1 billion Shillings from the oil production were diverted, tax fund returns immediately.

MEPs are also calling for rules on taxes, duties and fees to be decided pon in plenary – by the whole House and not by the committees that ratify legal acts.

Sources said the Ministry of Oil and EPRA are being asked to review the current pricing formula.

During the public participation, MPs called for KPA to accelerate the completion of Kipevu Oil Terminal II to eliminate the mooring costs.