Oil dealers in kenya

2,010 views

Published on

Kenya: Oil Dealers Raise Pump Prices
The company has continued to grow over the years. due to the demand of fuel in the Kenya market, the company tend to begin importing fuel from a trust worth suppliers
We are regularly Selling: diesel, kerosine, super.
We are regularly Buying: diesel, kerosine.
Nairobi — Major oil dealers in most parts of the North Rift have increased fuel prices to cash in on the festive season, sparking protests from motorists.
They have raised fuel prices by between Sh3 and Sh5 due to what they attributed to “impending shortages caused by increased crude oil prices in the international market.”
But some of the independent oil dealers have maintained the prices due to low demand for petroleum products, especially diesel, in the region.
A spot check by the Nation established that Caltex was selling a litre of unleaded premium at Sh83.40, regular at Sh84.40 and diesel at Sh73.40.
The independent dealers in the town were selling a litre of regular at Sh81.90 and diesel at Sh71.90. Fuel prices had reduced drastically early this year with diesel going for less than Sh67 a litre.
“The increased prices have been caused by a decline in supply because some of the oil marketing companies are stocktaking,” said Mr Hezekiah Kosgei, an independent oil dealer in Eldoret.

Contact
TINSEL CARGO & OIL COMPANY
COMMERCE HOUSE
3RD FLOOR, SUITE 311,
MOI AVENUE, NAIROBI.
P.O. BOX 79456-00200 NAIROBI, KENYA
TELE FAX: +254-20-2229781,
Cellphone: +254-722-761587,
+254-734-939308
Website: www.tinselcargo.com
EMAIL: info@tinselcargo.com


Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,010
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Oil dealers in kenya

  1. 1. Oil dealers in kenyaKenya: Oil Dealers Raise Pump PricesThe company has continued to grow over the years. due to the demand of fuel in theKenya market, the company tend to begin importing fuel from a trust worth suppliersWe are regularly Selling: diesel, kerosine, super.We are regularly Buying: diesel, kerosine.Nairobi — Major oil dealers in most parts of the North Rift have increased fuel prices tocash in on the festive season, sparking protests from motorists.They have raised fuel prices by between Sh3 and Sh5 due to what they attributed to“impending shortages caused by increased crude oil prices in the international market.”But some of the independent oil dealers have maintained the prices due to low demandfor petroleum products, especially diesel, in the region.A spot check by the Nation established that Caltex was selling a litre of unleadedpremium at Sh83.40, regular at Sh84.40 and diesel at Sh73.40.The independent dealers in the town were selling a litre of regular at Sh81.90 and dieselat Sh71.90. Fuel prices had reduced drastically early this year with diesel going for lessthan Sh67 a litre.“The increased prices have been caused by a decline in supply because some of the oilmarketing companies are stocktaking,” said Mr Hezekiah Kosgei, an independent oildealer in Eldoret.But he fears that the fuel prices are likely to increase further due to increased demandduring the festive season.Oil prices retreated to near $73 (Sh5,475) a barrel on Tuesday as Opec ministersindicated they would leave crude production levels unchanged while seeking to ensurecompliance with members’ output quotas.
  2. 2. But some motorists claimed that most petroleum marketing outlets in the region weretaking advantage of the festive season to exploit them.“This is mere exploitation due to the lack of price controls,” matatu operator PeterKoech said.The motorists petitioned the government to impose price controls to rein in marketingcompanies that are intent on increasing pump prices.Last year, the government promised to implement fuel price controls following theescalating cost of petroleum products. Petrol prices rose to Sh110 a litre, while dieselprices climbed to Sh105 a litre due to increased crude oil prices.Kenya: New Oil Pricing System Sparks Dealers’ ProtestsLeading oil marketers on Monday reacted angrily to the reintroduction of oil pricecontrols by the government, saying they would discourage investment and economicexpansion.Shell and KenolKobil questioned the basis for the pricing structure that caps themaximum margin for oil wholesalers at Sh6 per litre of petrol and Sh3 for retailers,unveiled by the minister Kiraitu Murungi, saying the Energy (Petroleum Pricing)Regulations 2010 published on Monday did not consider the heavy investments made byoil firms.The formula covers most of the elements but it does not recognise investment in depots.Where are the incentives for marketers to invest in petroleum handling infrastructure?”said Kenya Shell country manager Jimmy Mugerwa.“The Sh6 -litre whole sale margin is not clear. There is no basis on how that was arrivedat. Transport and delivery has been pegged at Sh7.50 per litre. It costs us Sh15 totransport one litre per kilometre using the big haulage companies,” said Mr Mugerwa.The regulations come into force on December 15 and will prevail for one month beforethey are adjusted again in mid January in view of the movements in crude oil prices.“The price controls suggestion is surprising. There has been no consultation by theGovernment or ERC with major oil industry players who have invested heavily inKenya,” said KenolKobil’s managing director Jacob Segman.“The price controls must be transparent and the result of regular reviews byindependent, professional, third party bodies and must take into account all cost factorsinfluencing the marketing of petroleum products, especially infrastructure costs and thedamaging effect of system inefficiencies,” he added.
  3. 3. In addition to the price caps, the Government has allocated to the State owned NationalOil Corporation (Nock) , one third of refined products in a move that sector players saywill encourage anti -competitive behaviour.“We have concerns about the multirole involvement of the Government in thedownstream oil industry, by controlling in land infrastructure , regulating the industry,acting as an OMC through the National Oil Corporation ( Nock) and most recently inimportation of refined products,” said Mr Segman in a statement copied to the CapitalMarkets Authority( CMA).On Monday, Nock announced price adjustments on its diesel products that it recentlyimported as part of the new mandate it acquired mid this year intended to stabilise fuelprices in the country.The State firm is selling diesel at Sh84 in Nairobi compared to anaverage of Sh88-91 posted by other marketers.The Kenyan petroleum industry already faces some of the thinnest margins comparedwith other industries due to high competition amongst marketers and the government’scontrol of the oil import, storage and distribution process..KenolKobil said prices for its products must reflect a fair return on investment even as itpursues an expansionist strategy beyond the Kenyan business unit.Kenya Oil Company unchanged on high volumeKENYAN COMPANY NEWS BITES STOCK REPORT Kenya Oil Company (62.NR)closed unchanged at KES9.70. Compared with the NSE 20-Share index, which fell 10.2points (or 0.2%) on the day, this was a relative price change of 0.2%. The volume was4.5 times average trading of 643,098 shares. Price Change %1-day1-month1-year62Unch-3%-84.1%Total Kenyan Market0%-3.4%10.7%NSE 20-Share-0.2%-5.6%21.7% PRICE VOLUME DYNAMICS Volatility: the stock tradedbetween an intraday low of KES9.50 and a high of KES9.70, suggesting…The African Oil SectorOil and Gas Energy Market Statistics in Kenya
  4. 4. The Kenyan Oil SectorContactTINSEL CARGO & OIL COMPANYCOMMERCE HOUSE3RD FLOOR, SUITE 311,MOI AVENUE, NAIROBI.P.O. BOX 79456-00200 NAIROBI, KENYATELE FAX: +254-20-2229781,Cellphone: +254-722-761587,+254-734-939308Website: www.tinselcargo.comEMAIL: info@tinselcargo.com

×