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Oil Benchmark: Senate disagrees with House, recommends $78 per barrel

The senate has recommended $78 as the benchmark price of crude oil per barrel in the 2013 Budget. The senate arrived at this decision while considering the … Continue reading Oil Benchmark: Senate disagrees with House, recommends $78 per barrel


The senate has recommended $78 as the benchmark price of crude oil per barrel in the 2013 Budget.

The senate arrived at this decision while considering the 2013 to 2015 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF).

The position of the senate however differs from the House of Representatives which fixed the benchmark of crude at $80 barrel.

In the MTEF report, the presidency fixed the benchmark price at $75 per barrel.

While presenting the report, chairman of the senate committee on finance noted that there is no provision in the MTEF for petroleum subsidy.

Presenting the report on the floor of the senate, the chairman of the senate committee on finance said the committee opted for a higher benchmark price of crude.

The lawmakers noted that the MTEF did not capture the internally generated revenue of government ministries, departments and agencies.

They also complained about the absence of unemployment in the MTEF.

The senate asked the executive to make specific provisions for subsidy payments or a clear statement if it intends to stop subsidizing petroleum products.

The lawmakers also recommended that the details of projects to be executed under the SURE-P programme be attached as an addendum to the annual appropriation for scrutiny and approval of the National Assembly.