Page 12 - AfrOil Week 13 2022

AfrOil POLICY AfrOil

Consumers’ group lobbies Kenyan

government to scrap 16% tax on LPG

KENYA THE Consumers Federation of Kenya (COFEK) strategic fuel reserves and putting in place budg-
is lobbying the government to scrap the 16% etary allocation for buying stock to shield con-
VAT levied on LPG to make the commodity sumers when prices of crude oil and refined oil
affordable and to help reduce dependence on products rise by a high margin.
firewood and charcoal for domestic cooking. “If Kenya has storage capacity, would have
LPG is a clean source of energy with high cal- stored 90-day stocks of cheap oil when price
orific value while overdependence on firewood had fallen to $25 a barrel during the coronavi-
and charcoal for cooking is responsible for Ken- rus (COVID-19) pandemic and release it when
ya’s high rate of deforestation in water catchment prices are high to stabilize market prices,” said
areas, COFEK argues. COFEK.
“We propose that VAT on LPG be abolished, It wants a strategic role given to National Oil
or charged at 8% similar to petroleum products. Corp. of Kenya (NOCK) and the state-owned
The purpose of this is to remove the burden on enterprise given resources to undertake the
‘Wanjiku’ who rely on LPG cooking and to help mandate with capacity enhancement phased
increase uptake of this clean cooking energy,” over a period of time. The rationale is anchored
said COFEK. (Wanjiku is a female name among in achieving security of supply and stable petro-
the Kikuyu ethnic group, but it is also used in leum product prices. ™
Kenya in reference to everyday people.)
COFEK’s proposal came in response to the
Treasury recently asking people to comment
on policy and tax measures in the draft 2022/23
budget.
The group’s CEO Stephen Mutoro said an
anti-adulteration levy on kerosene needs to be
halved to remove the burden on ordinary people
who rely on the fuel for lighting and cooking.
“There is a need to cushion poor households
from high kerosene prices given that kerosene is
the only fuel product affected by the anti-adul-
teration levy,” Mutoro said in a proposal submit-
ted to National Treasury and Planning Cabinet
Secretary Ukur Yatani.
The lobby group has called for setting up COFEK has called for eliminating the 16% VAT on LPG (File Photo)

Uganda launches oil spill contingency plan

UGANDA UGANDA’S government has formally unveiled PAU is currently working with other relevant
its oil spill contingency plan as part of the effort government bodies and community organisa-
to prepare for launching oil production at the tions at all levels to ensure the appropriate levels
Kingfisher and Tilenga oilfields near Lake of preparedness in advance of spills, he added.
Albert in 2025. This includes assisting in the establishment and
The government finalised the plan in Feb- equipping of oil spill response hubs, as well as
ruary of last year, with help from the National providing specialised training for oil spill man-
Environment Management Authority (NEMA), agement, he said.
the Petroleum Authority of Uganda (PAU) and It is important to take these steps before any
the Office of the Prime Minister (OPM). It then accidents occur, Rubondo added. “Experience
presented the plan to the public at an event in from around the world is that most countries
Kampala on Monday (March 28). put plans like this in place long after they have
Ernest Rubondo, PAU’s executive director, produced oil but also after undesirable inci-
noted at the event that his agency would take the dents have occurred,” he said, according to The
lead in the management of any future oil spills. Independent.

P12 www. NEWSBASE .com Week 13 30•March•2022