Prof. Kitila has the cure to high oil prices, what is it?

Prof. Kitila has the cure to high oil prices, what is it?

Ubungo MP and the former Minister of Industries and Trade, Prof. Kitila Mkumbo, called for an immediate intervention by the government on a rampant surge of commodities that hugely inflict the citizens.

Speaking at the parliament today, April 8, 2022, Prof Mkumbo hailed the government’s explanation on the surge in oil prices, subsequently calling for more drastic measures to intervene into the crisis before the incidence worsens.

“The most important thing, for now, is to understand measures taken by the government to provide relief to its people. We all know that prices are now at a very abnormal rate,” – Prof Mkumbo said.

To back his statement, Mkumbo gave an example that oil prices surged at Tsh 36/- in 2021, contrarily to 2022 where it has surged at Tsh 738, which is not normal.

In response to the crisis, Prof Kitila Mkumbo advised the government, at least for a while, to cut the oil import levy between Tsh 300-400 out of 700 that it directly collects as import levy; this would relieve the citizens. Mkumbo said the government should do that for three to four months to monitor the situation of the oil prices in the global market before it resumes to normal prices.

Adopting Prof Mkumbo’s advice toward responding to the price crisis would witness the country lose billions in revenue. Thus, Mkumbo advised the government to seek a loan to accommodate development activities.