Kenya orders oil firms to cut prices
Wednesday, 15 October 2008
NAIROBI, Oct. 14 (Xinhua): The Kenyan government yesterday ordered an immediate reduction of oil prices and warned the government would use all its instruments to reduce the cost of refined oil to put the economy back on track.
But oil distributors and other dealers, speaking earlier, warned that an immediate reduction in the cost of oil could not be done unless the price of crude falls drastically to 50 U.S. dollars a barrel and the government cuts down its taxation of the oil industry.
In his first official warning to the oil companies since he took over as acting finance minister in July, John Michuki said the Kenyan economy was under immense pressure from the high oil prices at home as a result of the failure by the oil firms to reduce the prices.
Michuki, who is attending the International Monetary Fund (IMF), World Bank annual meeting in Washington, pledged to deal with the oil firms using all available government instruments.
"The government would like to make it clear that it stands ready to use every instrument at its disposal to protect consumers and the economy at large," the finance minister said.
But oil distributors and other dealers, speaking earlier, warned that an immediate reduction in the cost of oil could not be done unless the price of crude falls drastically to 50 U.S. dollars a barrel and the government cuts down its taxation of the oil industry.
In his first official warning to the oil companies since he took over as acting finance minister in July, John Michuki said the Kenyan economy was under immense pressure from the high oil prices at home as a result of the failure by the oil firms to reduce the prices.
Michuki, who is attending the International Monetary Fund (IMF), World Bank annual meeting in Washington, pledged to deal with the oil firms using all available government instruments.
"The government would like to make it clear that it stands ready to use every instrument at its disposal to protect consumers and the economy at large," the finance minister said.