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Oil price controls are good for the economy of Kenya
Date Posted:
12/18/2012 12:29:58 AM
Posted By: moff J Membership Level: Silver Total Points: 485
result of this, oil prices have been reasonably stable and this is good for the economy as a whole. Firms can now be able to plan much more efficiently and boost their productivity.
Despite this, the government has to ensure that the investment environment is attractive to all investors, including the oil marketers.
Therefore, these price controls put the government on a tight rope where it is juggling between controlling the oil prices on one hand and on the other hand ensuring that the oil marketers do not find the Kenyan market unattractive. This calls for a lot of consultations and balancing because a small misstep will make the entire cause tumble down.
Therefore, in supporting the price controls, we have seen that it is for the interest of the general economy because oil is used across the board in all sectors of the economy. Thus, the government did a good job to introduce the controls. Nevertheless, it has to be pointed out that the government also aims at providing an attractive environment of the investment community. Therefore it has to balance between the interests of consumers and those of oil marketers. Without the oil marketers, there could be no oil to control after all!
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