NAIROBI, Oct. 30 (Xinhua) -- The Kenyan government has agreed to pass legislation to reintroduce fuel price controls in the country to protect consumers from exploitation by oil companies.

    Energy Minister Kiraitu Murungi said in Parliament that the Energy Regulatory Commission would publish a legal notice to that effect in two weeks to fix pump prices at seven percent above the rate of crude oil.

    Kiraitu told Parliament late Wednesday that the National Oil Corporation would be empowered to import 30 percent more of crude oil above the local consumption besides acquiring 86 petrol stations owned by Caltex to ensure the state corporation plays a major role in the oil industry.

    The minister said the notice would bar oil companies from selling the commodity at more than seven percent of their total cost.

    He told the lawmakers that the government's pleas to oil companies to sell fuel according to international prices had largely been ignored and it was time to act.

    "Even the President called for a reduction of prices by more than 10 shillings (about 12.5 U.S. cents). I did not act previously because I thought we had moved away from era of price controls," said Murungi.

    He also announced plans to push for the National Oil Corporation of Kenya (NOCK) to import 30 percent of the country's fuel requirements.

    He revealed that NOCK was also working to increase its market share by purchasing 86 petrol stations from Caltex.

    The minister also said the electricity tariffs will be slashed next month. He said the government is aware of the challenges Kenyans are facing from high tariffs occasioned by high fuel prices.

    Murungi said the government will continue financing the Rural Electrification Program to ensure that all Kenyans have electricity by 2012 in line with Vision 2030.

    Kenya recorded the highest level of demand for electricity in the August this year. Kenya's state-owned Kenya Electricity Generating Company (KENGEN), which produces electricity for sale to KPLC, generates 1,200 megawatts annually.

    The national electricity demand has gone up to 1,060 annually, leaving a slim chance for savings on the national reserve.

    Kenyan officials have proposed to build a 200 billion shillings nuclear power plant to help provide the more than 2000 megawatts that Kenyan officials believe would be required to keep the high demand for electricity if the economy is to grow at 10 percent.