Page 11 - People Daily Newspaper

Monday, September 20, 2021 / PEOPLE DAILY PEOPLE SPEAK
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New thinking urgently needed to tame fuel price surge ODDLY ENOUGH
K

The skyrocketing fuel prices at as the panacea for rising prices.
the pump are very bad news for Ke- ("5)6 ,""3" This is so disingenuous. Economics
nyans. Coming at a time when the 101 teaches us that oligopolies, like
economy is crippled by Covid-19, it is 5IFTF BSF IBSTI UJNFT BOE UIF HPWFSONFOU IBT UP CJUF UIF Kenya’s oil sector, do not compete,
pushing people to desperation. and actually collude to keep prices
The country is headed towards a CVMMFU 5IF USBKFDUPSZ JT UPP EBOHFSPVT UP CF BMMPXFE UP DPOUJOVF artificially high.
tipping point. New thinking is ur- Our oil market is an oligopoly
gently needed to defuse the mount- is because this is the only dynamic need fiscal discipline. Thirdly, sus- (market with limited competition
ing anger over the rising cost of over which it has full control, and pend expenditures on non-essential dominated by a few players). The
living. All leaders are united on this where it can get immediate impact. projects that can wait for the econ- main players are Vivo Energy (Shell)
— fuel prices have shot beyond ac- This is very urgent. Another price omy to turnaround post-Covid. The with a 26 per cent market share, fol-
ceptable levels, and must be reduced review is due in 25 days. With the pre- money saved from such projects can lowed by Total Kenya at 23 per cent, 'XFN OHDUQV WR
soonest. vailing anger, that will not be the time be used to cover the consequent dent Rubis Energy at 13 per cent, and Ola
First, let’s break down the reasons to raise prices any further, irrespec- in revenues due to reduction of taxes Energy and National Oil Corporation VD\ ¶EORRG\ IRRO·
behind the rising fuel costs. The key tive of any changes in oil dynamics. on fuel. This entails bringing down of Kenya at seven per cent each. The
two factors are the international However, a sustainable formula the current huge deficit in the budget other 45 companies in the industry DIWHU PLPLFNLQJ
prices of crude oil, and the value of must replace the current one. Sim- to more closely align government share the remaining 25 per cent.
the shilling against the dollar. Rising ply put, the level of taxation on fuel expenditures to its revenues. Secondly, oligopolistic markets re- LWV FDUHWDNHU
crude prices increase cost of landed must come down. Even the subsidy These are harsh times, and gov- tain artificially high prices irrespec-
product in Kenya, while a depreciat- route is not sustainable. The industry ernment has no alternative but to tive of reduction in costs. Further, A dog says woof, a cow goes moo,
ing shilling means more of the local regulator, the Energy and Petroleum bite the bullet. The trajectory is too capricious price increases based on and a duck… swears at you like a
currency is needed for same quantity Regulatory Authority (EPRA), said dangerous to be allowed to continue. selfish considerations are the norm. human being from the 1970s?
of product. The government has little it was not allowed to subsidise the Lastly, whatever the government Kenya has been here before. There That’s right – not every duck
control over these two. prices this time round after doing so does, it must not eliminate the EPRA is a reason why the price mechanism wants to quack.
The biggest leverage the govern- for two straight months. The govern- pricing mechanism, which has been was instituted in the first place. It Scientists have recorded the first
ment has are over its taxes on fuel. ment cannot sustain an economy a critical component in providing stabilised the market. In Uganda’s known instance of one that has
Taxes on fuel are a very easy and ef- wide subsidy. stability and predictability of the free energy market, oil companies learned to mimic human speech,
fective method of raising revenues To tackle this, three challenges local fuel market. It is now the fash- have raised pump prices twice in the with one in Australia – called Ripper
for government. It’s literally an must be addressed. First, new sourc- ionable thing by so-called “experts” last one month. This is extremely – telling them: ‘You bloody fool’.
economy-wide tax. es of revenue must be sought im- to dismiss the pricing mechanism destabilising to businesses and the It seems like a joke, we know, but
The government must, therefore, mediately. Secondly, close loopholes because it is institutes price controls. economy. Don’t go back there. it has been documented in an offi-
go back to the drawing board and re- and leakages in government spend- They now want the government cial journal and recorded on tape.
look at the taxes it levies on fuel. This ing. There is too much wastage. We to allow “oil companies to compete,” — gathukara@gmail.com Ripper is quite the vocalist, as he
has also learned how to do an imita-
tion of a door closing.
It is thought that he picked these
up from a man who looked after
Politicians owe us an intact country brand beyond ‘22 him, in a similar way to how parrots
learn to talk.
The musk duck was hand-reared
It is less than a year to the General 8"64* 8"-:" it should be rewarded with a transi- from an egg found at the Tidbinbilla
Election and already everyone feels tion that is smooth enough to ensure Nature Reserve near the capital city
Canberra in 1983. He was recorded
the rising political temperatures. 1PMJUJDBM MFBEFST TIPVME BTTVSF UIF WPUFS elections are a one-day affair. doing his unusual trick in 1987,
Politicians are busy planning cam- This is a plea to politicians to as- but research about it has now been
paigns and scheming political coali- UIBU XF XJMM HFU CBDL UP VTVBM CVTJOFTT JO UIF sure us that we can get back to busi- authenticated and published in a
tions. The media is switching heavily TIPSUFTU UJNF QPTTJCMF BGUFS FMFDUJPOT ness in the shortest time possible af- special issue of the journal Philo-
to headlines that favour political ac- ter elections and that the journey to sophical Transactions of the Royal
tivities. And the country — from the while new charters from Romania ensure our country brand is a heri- the ballot will not stain our national Society of London B.
urban to the rural — has been bitten and Ukraine prove we remain an tage that the next generations can and international image. This is our “These sounds have been de-
by the political bug. investment destination of choice, the pride themselves in? Does it matter motherland and we would like to scribed before, but were never ana-
Unfortunately, this five-year cycle Expressway is soon going to change whether we are deliberate on our have it intact beyond elections. lysed in any detail and went so far
this time round finds us amid a pan- our infrastructure story, the Mara mi- personal contribution as citizens? We must all safeguard the gains unnoticed by researchers of vocal
demic that has led to loss of lives, dis- gration ongoing, and we are starting Kenya is known for its strong dem- from our long struggle to a demo- learning,” the authors said.
ruption to normal life and a dented to reap the fruit of an economy that is ocratic space and the freedom that cratic and peaceful country. It is on Previously, parrots and hum-
economy besides a severe strain on slowly coming getting on its feet. we enjoy as citizens is admirable. We this solid country brand we will con- mingbirds were the only birds
thought to display this ability,
the infrastructure of the medical These positive narratives should may not appreciate fully how many tinue to rise and take our place in the though several mammals such as
institutions. remind our leaders that as they cam- people would trade places with us to region and in the global stage. whales, dolphins, seals, bats and
On a more positive side, it also paign for political seats, we expect take the share we have as bona fide We would like some assurance elephants can imitate sounds.
finds us counting many of our bless- manifestos that build on what is citizens of our blessed country but that after elections we shall be able - Metro
ings as a nation. Kenya continues to working for us. The lucky candidate our country is a gem and besides its to go back to our daily chores almost
attract global eyeballs arising from a to get our nod to occupy the house breath-taking beauty, endowment immediately, proceed to trade
lot of positive events that have kept on the hill will desire to steer a coun- with wildlife, adventure experiences with our partners, that tourists will
our country brand equity on the rise. try that is on the rise. and a great all round weather, Kenya continue to flow considering that it
Our athletes just made us proud at Therefore, leaders need to assure has enjoyed peace over the years. will be the high season and that our
the Japan Olympics and at the World us at the end of it all, we will still have Every five years, as part of the citi- country brand, that we will just have
Athletics U20 championships by top- a country we are proud of, a brother- zen constitutional obligations, Ke- showcased at the commonwealth
ping the medal chart. We are lead- hood that does not divide us based nyans get an opportunity to make a games a month before elections,
ing the EAC secretariat, our anchor on tribe or class and continuity in na- choice about the political leadership. will continue to rise, giving us all re-
products like flowers, tea and coffee tional development programmes. The patriotism demonstrated by the newed hope for a better Kenya.
continue to be our gifts to the world, How do we ensure Kenya remains long queues of Kenyans keen to ex-
Lufthansa just started two-weekly intact beyond elections ? What role ercise the democratic right through — The write is a PhD student at USIU TRUTHIS: When we ponder Christ’s
flights into the Mombasa airport do we have at the individual level to voting must not be abused, instead, and a communications specialist love for us, we will want to live Him.
58&&54 50 5)& &%*503 / / / @PeopleDailyKe / / / People Daily
Numbers make better names for roads Challenge high fuel prices in court Violence has no place in our politics! ‘Full NCPB’ killing farmers’ hopes
@MigunaMiguna: Mombasa Road is fine @NelsonHavi: Fuel prices is the next @JimiWanjigi: It is very unfortunate what @RailaOdinga: Farmers toil to till the
with Kenyans. But if we must rename frontier where the people’s legal battle has happened today in Migori. Violence land, plant, weed and harvest: coupled
it, why not use numericals which is the on good governance, transparency and has no place in politics. I hope ODM Party with prayer for rains to start and stop at
way major highways are named in many accountability against Parliament and Leader @RailaOdinga will join me in con- the right time. When the produce is taken
countries? We can call it 100 Road. We the Executive should focus. Where are demning it in the strongest terms. I also to NCPB they’re informed that the board
should also rename Uhuru Highway, Moi the experts to problematize the issue urge the security agencies to take up this cannot purchase it because its stores are
Avenue, Mama Ngina Street, et cetera. that we may commence the legal battle? matter. full of “imported” maize. A total shame!