Time to review the Price Control on Fuel?
According to the Kenya Integrated Household Budget Survey (KIHBS) 2015/16, 36.1 per cent of Kenyans are living on less than Kshs. 1,900 per month for rural areas and less than Kshs. 2,700 per month for urban areas. This has likely worsened based on the findings of the Survey on Socio-Economic Impact of COVID-19 on Households Report conducted by the Kenya National Bureau of Statistics (KNBS) earlier this year which revealed that there was generally a decrease in the number of hours worked across sectors attributable to COVID-19 lockdown measures. While the recently rising global oil prices are a factor, policy options adopted by the government in the last 3 months (June-August) have equally exacerbated the effects of increments in pump prices on the pockets of the Mwananchi. It is unconscionable that during a pandemic the government would adopt policies that would only serve to widen inequality within the country. The press release details the impact of: provisions relating to oil and gas in the Tax Laws (Amendment) Act, 2020; the Legal Notice increasing the Petroleum Development Levy by Kshs 5.00; the EPRA price miscalculation in the June/July period; and Finance Act 2020.
Photo Credits: Daily Nation