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Fuel Price reduced
Rank: Elder Joined: 11/27/2007 Posts: 3,604
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the regulator cuts petrol prices in nairobi by 5.07 shillings/ ltr from 124.13, diesel down 3.33 shillings from 114.30 the margin is sooooo small. African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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these guys are nuts!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 2/21/2009 Posts: 573
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Really ?
How long before they adjust upwards?
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Rank: Elder Joined: 10/23/2008 Posts: 3,966
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Let's be optimistic. Who knows, next month it may be reduced by another sh7, and so on. Then we find ourselves at sub 90. Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
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Rank: Elder Joined: 5/4/2008 Posts: 1,703
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Sober wrote:the regulator cuts petrol prices in nairobi by 5.07 shillings/ ltr from 124.13, diesel down 3.33 shillings from 114.30 the margin is sooooo small. @ na gas imepatikana Think Positive Test Negative
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Rank: Veteran Joined: 3/16/2009 Posts: 1,464
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carygoh wrote:Sober wrote:the regulator cuts petrol prices in nairobi by 5.07 shillings/ ltr from 124.13, diesel down 3.33 shillings from 114.30 the margin is sooooo small. @ na gas imepatikana Unasema ama unauliza?
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Rank: Veteran Joined: 12/9/2010 Posts: 894 Location: Nairobi
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Based on the fact that crude oil is going for $99 per barrel, and the dollar is exchanging at less than Ksh 90. The drop in prices by Ksh 5 is a drop in the ocean. We should be buying the fuel at less than ksh 100.To me anything above Kshs 100 per litre is crazy. Over to you committee on energy, Disband the ERC now. Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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People; People; People; You really have to study the ERC formula carefully in order to understand how the prices are arrived at. It is not based on the "spot" prices of crude and USD. The work with the "weighted average" for the preceding 30-day period. As I said here before; if we abandon the ERC formula, the price will jump to 150 the following day! The idea behind the formula is NOT to keep the prices low; rather it is to keep them fair to all - consumers and dealers alike Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 10/23/2008 Posts: 3,966
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@mukiha, spot on. Luck is when Preparation meets Opportunity. ~ Lucius Annaeus Seneca
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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Mukiha, now tell me why before ERC, any random comparison with TZ always had Kenyan cheaper and all over a sudden we are more expensive than TZ!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Elder Joined: 11/27/2007 Posts: 3,604
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whenever price is increased by the regulator, prices change in five minutes but when the prices are reduced they start claiming that they have to clear stocks before effecting the new price... African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Sober wrote:whenever price is increased by the regulator, prices change in five minutes but when the prices are reduced they start claiming that they have to clear stocks before effecting the new price... Not true! New prices take effect at one minute after midnight on the 15th day of the month. The issue of old stocks does not arise because the price is based on average volumes and costs for the preceding 30 days. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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McReggae wrote:Mukiha, now tell me why before ERC, any random comparison with TZ always had Kenyan cheaper and all over a sudden we are more expensive than TZ!!! I don't have the link, but I recall that some one dispelled this argument a few days ago, right here on wazua. Still, remember that in TZ, diesel is more expensive than petrol while in Kenya it is petrol that is costlier. Therefore, I have reason to doubt you statement that "before ERC, any random comparison with TZ always had Kenyan cheaper..." Here is a link with CURRENT prices in TZ: http://news.yahoo.com/ta...t-review-075822860.html
Can some one get a hold of, say, 2009 prices in TZ? Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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In the meantime; here is the formula: www.erc.go.ke/pricereg.docNothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: User Joined: 11/10/2010 Posts: 550 Location: Junction
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mukiha wrote:People; People; People;
You really have to study the ERC formula carefully in order to understand how the prices are arrived at. It is not based on the "spot" prices of crude and USD. The work with the "weighted average" for the preceding 30-day period.
As I said here before; if we abandon the ERC formula, the price will jump to 150 the following day!
The idea behind the formula is NOT to keep the prices low; rather it is to keep them fair to all - consumers and dealers alike Was talking to some guy about the fuel going down by 5 bob. Told him the drop is indicative of the direction fuel prices are now heading. Without the ERC, the fuel prices would be hiking by 20 bod in weeks. The ERC spreads out the shock so that there is predictability in the market. By inference, the man is all that Mr Phantom is not: an untrustworthy radical, divisive, too many enemies, a dictator, and a persistent liar...Gaitho dialogues.
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Rank: User Joined: 11/10/2010 Posts: 550 Location: Junction
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11.1 Oil Industry statistics indicate that petroleum dealers are currently enjoying Retail Margins ranging from Ksh.2.30/Litre to Ksh.2.50/Litre for Premium Motor Gasoline (PMS) and Regular Motor Gasoline (RMS); and Ksh.2.15/Litre for Automotive Gas Oil (AGO) and Illuminating Kerosene (IK). The submissions made to the Commission by Station Dealers indicate these margins have been fixed by the suppliers for the last four years and therefore insufficient due to erosion by inflation. This information is also collaborated by the high turnover of Petrol Station Dealers in the country. 11.2 To ensure that the retail business is whole, it is proposed that ERC recommend a 20% escalation of the existing retail margin to a maximum Ksh.3.00/Litre for super and regular petrol and ksh 2.80per litre for kerosene and diesel. These retail margins will also include station operational losses of about 0.5%. How is KK able to give a discount of 5 shillings per litre and still remain in business? What happened to the 4.5 or is it 6.5 billion they were awarded payable by Kenya Refinery or is it KPC? Can you see a disconnect here? By inference, the man is all that Mr Phantom is not: an untrustworthy radical, divisive, too many enemies, a dictator, and a persistent liar...Gaitho dialogues.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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mukiha wrote:McReggae wrote:Mukiha, now tell me why before ERC, any random comparison with TZ always had Kenyan cheaper and all over a sudden we are more expensive than TZ!!! I don't have the link, but I recall that some one dispelled this argument a few days ago, right here on wazua. Still, remember that in TZ, diesel is more expensive than petrol while in Kenya it is petrol that is costlier. Therefore, I have reason to doubt you statement that "before ERC, any random comparison with TZ always had Kenyan cheaper..." Here is a link with CURRENT prices in TZ: http://news.yahoo.com/ta...t-review-075822860.html
Can some one get a hold of, say, 2009 prices in TZ? In TZ about september the price was between Tshs 1600-1700 ie between kes 94-100......what was the price in kenya then? http://allafrica.com/stories/200909141456.html..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: User Joined: 11/10/2010 Posts: 550 Location: Junction
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This part shows we are dealing with wolves and hyenas in drawing up the plan and implementing it. We know for sure that Emilio was duped to launching the said doubling capability but that was a mirage. c.p. 8.0 ROAD BRIDGING FROM MOMBASA TO UPCOUNTRY DEPOTS 8.1 KPC is currently unable to meet market demand. This has resulted to use of road transport from Mombasa to Nairobi, Western Kenya and the neighbouring countries. 8.2 The Mombasa – Nairobi pipeline is undergoing capacity expansion from the current 440,000 litres per hour to 880,000 litres per hour. This is expected to be achieved by August 2009.8.3 Plans are at an advanced stage to build a new 10 inch line parallel with the existing 8inch diameter Nairobi – Eldoret pipeline. By inference, the man is all that Mr Phantom is not: an untrustworthy radical, divisive, too many enemies, a dictator, and a persistent liar...Gaitho dialogues.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Kihangeri wrote:11.1 Oil Industry statistics indicate that petroleum dealers are currently enjoying Retail Margins ranging from Ksh.2.30/Litre to Ksh.2.50/Litre for Premium Motor Gasoline (PMS) and Regular Motor Gasoline (RMS); and Ksh.2.15/Litre for Automotive Gas Oil (AGO) and Illuminating Kerosene (IK). The submissions made to the Commission by Station Dealers indicate these margins have been fixed by the suppliers for the last four years and therefore insufficient due to erosion by inflation. This information is also collaborated by the high turnover of Petrol Station Dealers in the country.
11.2 To ensure that the retail business is whole, it is proposed that ERC recommend a 20% escalation of the existing retail margin to a maximum Ksh.3.00/Litre for super and regular petrol and ksh 2.80per litre for kerosene and diesel. These retail margins will also include station operational losses of about 0.5%.
How is KK able to give a discount of 5 shillings per litre and still remain in business? What happened to the 4.5 or is it 6.5 billion they were awarded payable by Kenya Refinery or is it KPC? Can you see a disconnect here? The MAX wholesale margin is KSh6.00; the MAX retail margin is KSh3.00. This gives KK a whole KSh9.00 for the fuel sold through their own stations. In addition, if they are able keep their costs below the averages used by ERC, you can see how they can raise their margin to KSh10.00.... Now add the effect of the increased volumes due to lowered prices and you will see their logic. I think it was a brilliant move by them, and so I bought the shares! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Here is the actual legal notice no. 196 of Dec 2010: http://www.erc.go.ke/erc/Regulations/THE%20ENERGY%20(PETROLEUM%20PRICING%20)%20REGULATIONS,%202010.pdfSTUDY THE FORMULA therein and you will see my argument... Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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