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Kenyan Minister Warns Oils Companies Over Recent Price Hike

Posted on: Thursday, 11 August 2005, 12:00 CDT

Text of report by Kenyan KTN TV on 11 August

[Presenter] Energy Minister Simeon Nyachae today told oil companies to lower their prices or lose their operating licences. He said the recent hike in fuel prices was unwarranted and amounted to exploitation.

Nyachae said a meeting between the government and industry players had resolved to clear all traders whose tax remittance was up-to-date by the 31st of July, in a bid to unclog the fuel distribution system.

Prevalent fuel shortages have been attributed to problems resulting from the implementation of new fuel tax remittance rules implemented by KRA [Kenya Revenue Authority]

[Nyachae] Oil companies who had their accounts up-to-date with KRA as at 31st of July, they would be allowed to continue taking their oil and distributing it. Those who are in dispute in their accounts with KRA should be allowed to take their oil and they pay for the new oil on the basis of truck by truck. I must say categorically as far as this ministry is concerned, that three shillings increase is based on exploitation by the oil dealers in this country and they must stop doing that kind of thing. And quite frankly, this exploitation must come to an end. And so long as I am the minister in this ministry, if this exploitation is going to continue, I am the one who is authorized by law to do the licensing; and therefore I will cancel [the licences].

Source: BBC Monitoring Africa

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