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Why I'm Still Paying 110/= Plus at the Pump
Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Sober wrote:The controls were put in place to protect from increasing prices of fuel, on the same note I was expecting the downward trend to be control free and follow market forces. Exactly!!! Verdict: Oil companies cannot self regulate. They are happy with the high prices and have cartel like behaviour! Recipe for disaster (to the consumer of course). Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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MaichBlack wrote:Sober wrote:The controls were put in place to protect from increasing prices of fuel, on the same note I was expecting the downward trend to be control free and follow market forces. Exactly!!! Verdict: Oil companies cannot self regulate. They are happy with the high prices and have cartel like behaviour! Recipe for disaster (to the consumer of course). The reason why the formula was introduced is because Kenyans complained that OMC prices were not reflective of oil trends - true. The formula has fixed components - GoK taxes & OMC margins (which were recently increased). Now, the variables are oil prices, interest rates & USD/KES trends. Here is a Jan-Mar oil chart http://www.nasdaq.com/ma...ts/crude-oil-brent.aspx
We all should know the weighting fuel & energy have on Kenya's inflation and if we would like to see interest rates come down with the KBRR, this formula should be maintained. Otw, back to square 1. Let the people decide...
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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MaichBlack wrote:Sober wrote:The controls were put in place to protect from increasing prices of fuel, on the same note I was expecting the downward trend to be control free and follow market forces. Exactly!!! Verdict: Oil companies cannot self regulate. They are happy with the high prices and have cartel like behaviour! Recipe for disaster (to the consumer of course). its better when the oil companies become the cartels because they share the loot with shareholders, right now the gvt cartel eats alone "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 3/2/2009 Posts: 26,328 Location: Masada
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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and kenyan oil price is rising "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Member Joined: 5/6/2011 Posts: 391 Location: Nairobi
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mlennyma wrote:and kenyan oil price is rising Perhaps erc is heeding the twitter calls to raise fuel prices to solve the traffic issues  . "You can't have everything. Where would you put it?" - Stephen Wright
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Speculz wrote:mlennyma wrote:and kenyan oil price is rising Perhaps erc is heeding the twitter calls to raise fuel prices to solve the traffic issues . What a nice idea!!! While at it, we could raise the cost of Healthcare to reduce congestion in hospitals, increase school fee to reduce congestion. Actually, the school fees for National Schools should be set at 150k per term to reduce the ugly competition for places and endless complains!!! And luckily, Petrol, Diesel and Kerosene are not used for cooking, in manufacturing and transporting just about anything we use in our daily lives etc. Public transport vehicles also don't use fuel so Kenyans will be encouraged to use public transport! And given that the so called Kenyans on Twitter are Industrialists, economists, Captains of industries etc. it would definitely be very wise to take their advice. If they were just idle Kenyans engaging Nigerians in "mchongowano", that would be a problem. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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The issue is not that we want to reduce the vehicles on the road. No the guys ( erc, fuel levy etc.) who get a % of the fuel money are getting very little and getting jittery.
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Rank: New-farer Joined: 7/17/2014 Posts: 15 Location: Geneva
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The pricing mechanisim used by the ERC is very transparent and fair I do not see anything sinister. Furthermore the same parameters that were used to decrease the pump prices are the same that were used to increase the same. The problem we have here is that both the media and world bank and many Kenyas alike are using the Brent Crude prices as a benchmark to evaluate the Kenyan pump prices. Wch is fundamentaly wrong!! The ONLY benchmark or reference that should be applied is the PLATTS Market Scan for finished white oils which is published daily in the international markets. Kenya stopped refining crude oil in 2012 and all our fuel needs are imported from the international markets. Regards,
Jimmy Boy
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Rank: Member Joined: 2/16/2013 Posts: 123 Location: MSA
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Jimmy Boy wrote:The pricing mechanisim used by the ERC is very transparent and fair I do not see anything sinister.
Furthermore the same parameters that were used to decrease the pump prices are the same that were used to increase the same.
The problem we have here is that both the media and world bank and many Kenyas alike are using the Brent Crude prices as a benchmark to evaluate the Kenyan pump prices. Wch is fundamentaly wrong!!
The ONLY benchmark or reference that should be applied is the PLATTS Market Scan for finished white oils which is published daily in the international markets.
Kenya stopped refining crude oil in 2012 and all our fuel needs are imported from the international markets.
@Jimmy boy Kenyans are a had lot to reason with. The saddest part is the media plays has also been good at misinforming the public. I use this for a quick glance https://www.theice.com/index Timely advice is as lovely as golden apples in a silver basket. Proverbs 25:11
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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So let me ask as the world crude oil prices are falling are those for refined oil going up and why ( no need for a formula), could it be that electricity in the refining country has gone up ??? this is what ERC needs to answer.
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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streetwise wrote:So let me ask as the world crude oil prices are falling are those for refined oil going up and why ( no need for a formula), could it be that electricity in the refining country has gone up ??? this is what ERC needs to answer. ERC never quotes external factors. Every time they give some internal bull crap story!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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streetwise wrote:So let me ask as the world crude oil prices are falling are those for refined oil going up and why ( no need for a formula), could it be that electricity in the refining country has gone up ??? this is what ERC needs to answer. Ask the two ERC employees above post #151 If Obiero did it, Who Am I?
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Rank: Member Joined: 3/20/2009 Posts: 348
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Jimmy Boy wrote:The pricing mechanisim used by the ERC is very transparent and fair I do not see anything sinister.
Furthermore the same parameters that were used to decrease the pump prices are the same that were used to increase the same.
The problem we have here is that both the media and world bank and many Kenyas alike are using the Brent Crude prices as a benchmark to evaluate the Kenyan pump prices. Wch is fundamentaly wrong!!
The ONLY benchmark or reference that should be applied is the PLATTS Market Scan for finished white oils which is published daily in the international markets.
Kenya stopped refining crude oil in 2012 and all our fuel needs are imported from the international markets.
jimmy boy i totally agree with you.i was surprised seeing Vimal Shah going on and on about why ERC raised prices on twitter.It is amazing a person of his caliber completely ignores the facts or refuses to just dig deeper and find out why prices are where they are.Even the Kenyan media is too lazy to report that we import refined oil so we don't have the benefit of prices dropping like they did back in 09 when the mombasa refinery was still working and could accommodate crude oil imports.Kenya is too broke or corrupt or fiscally inefficient to build a 21st century refinery.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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itz wrote:Jimmy Boy wrote:The pricing mechanisim used by the ERC is very transparent and fair I do not see anything sinister.
Furthermore the same parameters that were used to decrease the pump prices are the same that were used to increase the same.
The problem we have here is that both the media and world bank and many Kenyas alike are using the Brent Crude prices as a benchmark to evaluate the Kenyan pump prices. Wch is fundamentaly wrong!!
The ONLY benchmark or reference that should be applied is the PLATTS Market Scan for finished white oils which is published daily in the international markets.
Kenya stopped refining crude oil in 2012 and all our fuel needs are imported from the international markets.
jimmy boy i totally agree with you.i was surprised seeing Vimal Shah going on and on about why ERC raised prices on twitter.It is amazing a person of his caliber completely ignores the facts or refuses to just dig deeper and find out why prices are where they are.Even the Kenyan media is too lazy to report that we import refined oil so we don't have the benefit of prices dropping like they did back in 09 when the mombasa refinery was still working and could accommodate crude oil imports.Kenya is too broke or corrupt or fiscally inefficient to build a 21st century refinery. Exactly, Kenyans are so prone to mob psychology, sometimes its painful to watch "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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Can the geniuses kindly post the prices for December, January and February. While at it, provide a link to verify your values and tell us which month's price we were using in February and which month's prices we are using in March. We know what we know but apparently we might be wrong. Now give us figures. Sio sijui media ooh, Kenyans ooh. Bla bla bla... Figures and we interrogate them. Simple! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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MaichBlack wrote:Can the geniuses kindly post the prices for December, January and February. While at it, provide a link to verify your values and tell us which month's price we were using in February and which month's prices we are using in March.
We know what we know but apparently we might be wrong.
Now give us figures. Sio sijui media ooh, Kenyans ooh. Bla bla bla...
Figures and we interrogate them. Simple! while at it,can they also confirm a rumour that it was cheaper to import refined oil than import and refine crude oil at KPRL If Obiero did it, Who Am I?
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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MaichBlack wrote:Can the geniuses kindly post the prices for December, January and February. While at it, provide a link to verify your values and tell us which month's price we were using in February and which month's prices we are using in March.
We know what we know but apparently we might be wrong.
Now give us figures. Sio sijui media ooh, Kenyans ooh. Bla bla bla...
Figures and we interrogate them. Simple! Why not make google your friend. Even the countries who refine their oil, have seen a price increase. Do your research "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 7/22/2009 Posts: 7,452
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murchr wrote:MaichBlack wrote:Can the geniuses kindly post the prices for December, January and February. While at it, provide a link to verify your values and tell us which month's price we were using in February and which month's prices we are using in March.
We know what we know but apparently we might be wrong.
Now give us figures. Sio sijui media ooh, Kenyans ooh. Bla bla bla...
Figures and we interrogate them. Simple! Why not make google your friend. Even the countries who refine their oil, have seen a price increase. Do your research So people payuka and then I Google on their behalf??? If someone cannot support what they are saying, they should shut up!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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MaichBlack wrote:murchr wrote:MaichBlack wrote:Can the geniuses kindly post the prices for December, January and February. While at it, provide a link to verify your values and tell us which month's price we were using in February and which month's prices we are using in March.
We know what we know but apparently we might be wrong.
Now give us figures. Sio sijui media ooh, Kenyans ooh. Bla bla bla...
Figures and we interrogate them. Simple! Why not make google your friend. Even the countries who refine their oil, have seen a price increase. Do your research So people payuka and then I Google on their behalf??? If someone cannot support what they are saying, they should shut up!! Aren't you the one asking for prices/figures? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Why I'm Still Paying 110/= Plus at the Pump
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