page contents
Connect with us

Business

New Fuel Prices Fresh Fuel price hike looms in Kenya

Published

on

KENYA 1

The Energy Regulatory Commission is staring at a deep dilemma Friday as it readies to announce new pump prices amid the controversy over the 16 per cent value added tax on petroleum products.

With the rise in international crude prices last month and the VAT still in limbo but in force, the regulator may not have good news for Kenyans.




The announcement came on Wednesday, after a Russian publication quoted the player’s father, Dmitri, as saying in June 2017 that Cheryshev had received growth hormone injections when he played at Spanish side Villarreal.

ERC’s pricing Friday is clouded in uncertainty with a contempt proceeding on its doorstep for failing to respect a Bungoma High Court order by Justice Stephen Riech quashing the implementation of the 16 per cent levy on petroleum products to enable the President to either assent to or reject the amended Finance Bill passed by the National Assembly.

bm--i-refer--i-sell-i-buy

The dilemma is heightened by the silence from State House with the long wait for President Uhuru Kenyatta who had been out of the country when the VAT kicked in and whose signature the court battle is pegged on

ODM leader Raila Odinga had even assured the public on September 3 that the president would sign into law the amendments to the 16 per cent VAT on petroleum products passed by Parliament.

Wednesday, government spokesperson Erick Kiraithe’s newspaper commentary that the president is yet to receive the bill pushing the tax by two years paints an even grimmer picture over the fuel tax stalemate.

FOLLOW US ON:
 INSTAGRAMLINKEDINYOUTUBETWITTER & FACEBOOK

Another oddity facing Friday’s price revisions is the increasing costs for crude oil through the month of August which will be key in determining the pump prices since landed cost is a key component of the monthly price revisions.

 The crude oil prices have been on the rise from a low of $75 per barrel at the beginning of the month to yesterday’s high of $79.4 per barrel (according to Brett crude data), meaning ERC may be forced to raise the prices amid foul public mood over the VAT.

Should ERC announce a higher revision of the petroleum product prices Friday, the uproar is bound to be worse since the public outcry took temporary relief thanks to the ongoing court battle and the hope of the president signing the Bill passed by parliament late last month to push the tax two years ahead.

Consumers Federation of Kenya secretary-general Stephen Mutoro said the move to delay presenting the Bill to the president is among the ploys being made to buy time.

“There is obviously no political goodwill to relieve consumers from this burden and for ERC to pretend to be implementing a tax law while ignoring a court order is simply double standard. You will still see a rise in pump prices tomorrow based on these dodgy moves they have made since last week when we all know these products are already overtaxed. The president must make a move, it’s an unprecedented silence from him on this one,” Mr Mutoro said.

TO DOWNLOAD OUR MOBILE NEWS APP CLICK HERE
WATCH RUSSIA 2018 HIGHLIGHTS HERE

Business

Ghanaian government boost Agric sector lending with GHC400m provision.

Published

on

The Ghanaian Government has set aside GH¢400 million, with an additional funding of $14.0 million from the Africa Development Bank, towards the establishment and operationalisation of the Ghana Incentive Base Risk Sharing System for Agricultural Lending (GIRSAL) next year.

This system would to help manage the risks and stimulate private sector lending to the agricultural sector by providing guarantees to promote commercial bank lending.



Mr Ken Ofori-Atta, Minister of Finance, announced this when he presented the 2019 Budget Statement and Economic Policy of the Government to Parliament, The Budget is on the theme: ‘A Stronger Economy for Jobs and Prosperity’.

He said the Government would launch the livestock model of Planting for Food and Jobs dubbed: “Rearing for Food and Jobs” (RFJ) with the objective of increasing the production of selected livestock, especially poultry.

The Government, he said, believed that the country could leverage the PFJ and RFJ programmes and other efforts in agriculture to reduce the large food imports.

He said following a year of implementation of the PFJs Programme, the agricultural sector witnessed a growth rate of 8.4 per cent in 2017 and this was after almost a decade of erratic sector performance with an average growth rate of 3.4 per cent.

Mr Ofori-Atta said on account of this massive success, the Government implemented an expanded version of the PFJ in 2018, with more ambitious targets.

He said compared with a target of 500,000 farmers, a total of 577,000 farmers were supplied with subsidised fertilisers and seeds for the 2018 cropping season. ‘We expect another highly successful year and in 2019, we plan to expand the programme to cover a million farmers.’

IMG-20180912-WA0030

The Minister said as a country, ‘we spend over $2 billion every year importing food, for example, we import over a billion dollars of rice, $ 320 million of sugar, and $374 million of poultry.’

He said most of these the country could produce here in Ghana; creating jobs and saving foreign exchange.

It was, therefore, a key goal of the Government, he said, to replace a significant fraction of these imports with domestic production in the medium-term.

He said in the case of rice, the strategy was to increase volumes through increased yields of rice by expanding production areas in irrigated schemes, valleys and low lands around the country.

Mr Ofori-Atta said this strategy would be underpinned by making available to farmers, improved and certified seeds, subsidised fertilizers, enhanced access to mechanised harvesters to reduce post-harvest losses due to traditional labour-intensive threshing, and encourage private sector investment in milling facilities.

FOLLOW US ON:
 INSTAGRAMLINKEDINYOUTUBETWITTER & FACEBOOK

‘This will ensure that the quality of locally processed rice will be at par with imported rice,’ he added.

In the case of poultry, the Minister said about 70 per cent of the cost of production was from feed, which in turn was primarily determined by the cost and availability of maize and soya bean.

He said in order to bring down the cost of feed and make poultry production competitive, the Ministry of Food and Agriculture was working on a programme to sustainably boost soybean production through the provision of improved and certified seeds, subsidised fertilisers and harvest equipment to reduce field losses.

The Minister said adequate good storage for agricultural produce was a challenge that the country must address to avoid a situation, where the increased agricultural production arising from the support to farmers would end up going to waste.

‘In 2019, Government expects to increase its warehouse storage capacity by around 80,000 metric tonnes,’ he said.

On World Cocoa prices, he said the prices remained low after declining by about a third in the 2017/2018 season.

However, despite the significant decline, the Government maintained the producer price at GH¢7,600.00 per tonne to ensure that farmers did not suffer loss of income and purchased 904,000 metric tonnes of cocoa in the 2017/18 season.

He said Ghana needed to add value to its Cocoa output and Ghana, adding that, together with Cote d’Ivoire, they produced about 60 per cent of the world’s Cocoa.

‘But we earn only $6 billion of the world Cocoa value chain earnings of $125 billion—just about five per cent,’ he pointed out.

Through the Ghana-Cote d’Ivoire Cocoa Initiative, the Government, he said, was working on several fronts to increase the value they gained from Cocoa.

They include: Vigorously promoting both domestic and international cocoa consumption; and initiatives for market expansion for exports of cocoa products to Asia; and provision of incentives to the private sector to set up cocoa processing factories.



The Minister said the Government, had also as part of its strategy, to revamp the agricultural sector by placing focus on the tree crop subsector.

‘Cabinet has approved the formation of a Tree Crop Development Authority (GTCDA) to regulate and create a favourable environment for the growth and development of that sector,’ he said.

The Authority will initially regulate the cashew, sheanut butter, oil palm and the rubber crop sub-sectors, with other tree crops being added as and when necessary.

TO DOWNLOAD OUR MOBILE NEWS APP CLICK HERE
WATCH RUSSIA 2018 HIGHLIGHTS HERE

Continue Reading

Business

South Africa Rand stables against embattled pound

Published

on

The rand was relatively stable on Friday morning, and headed for its best week against the beleaguered pound in about nine weeks.



The fallout from the failure of the UK’s Brexit plan is on traders’ radars, overshadowing the controversial and divisive land reform debate, which has previously hurt the rand.

“May has seen her plans for ‘Shmexit’ torn apart: that is what one could dub a Brexit that is literally leaving the EU, but which in no way regains sovereignty in key areas, and which might be impossible to ever change further unilaterally,” UK-based Rabobank International analyst Michael Every said in a note.

“Indeed, we have seen a swathe of key ministerial resignations, and suggestions there are enough MPs’ votes in hand to trigger a leadership election as soon as next week.”

The pound tanked against a host of currencies on the news, but has since stabilised at lower levels as markets await further developments.

IMG-20180912-WA0030

The rand has benefited from the ensuing market volatility, settling a hefty 3% stronger against the pound on Thursday night. Local bonds have benefited, too.

The local currency has fared better against the dollar so far this week, strengthening the case for a big cut in fuel prices in December.

According to AA, the petrol price is likely to be cut by R1.54 a litre, diesel by 92c and illuminating paraffin 85c.

FOLLOW US ON:
 INSTAGRAMLINKEDINYOUTUBETWITTER & FACEBOOK

The expected drop in fuel prices comes as oil prices fall: Brent crude is about 10% lower in November, according to Iress data.

At 10.12am, the rand was 0.2% softer against the dollar at R14.2075, 0.32% weaker against the euro at R16.12 and 0.36% softer against the pound at R18.1858. The euro was 0.14% stronger to $1.1346.

The yield on the benchmark R186 bond slipped to 9.145% in early trade, from 9.17% at its last settlement.

TO DOWNLOAD OUR MOBILE NEWS APP CLICK HERE
WATCH RUSSIA 2018 HIGHLIGHTS HERE

Continue Reading

Facebook

Advertisement
Advertisement

Trending

Copyright © 2018 Anttention Media. All rights reserved