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KENOL/KOBIL
milken
#1351 Posted : Friday, February 18, 2011 9:38:35 AM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
VituVingiSana wrote:
Question to @milken

Why does RMS (Regular Petrol) cost more than PMS (Super Petrol)?

http://www.nation.co.ke/...-/111sjhcz/-/index.html



Because it comes from the refinery and not imported. The refinery is obsolete hence a lot of low value products (fuel oil and fuel loss. This means products from the refinery will cost more than imported products since for the same crude you obtain less PMS/DPK/AGO.
Itari muting'oe ihuragwo ngi ni Ngai
VituVingiSana
#1352 Posted : Friday, February 18, 2011 10:26:54 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,380
Location: Nairobi
milken wrote:
VituVingiSana wrote:
Question to @milken

Why does RMS (Regular Petrol) cost more than PMS (Super Petrol)?

http://www.nation.co.ke/...-/111sjhcz/-/index.html



Because it comes from the refinery and not imported. The refinery is obsolete hence a lot of low value products (fuel oil and fuel loss. This means products from the refinery will cost more than imported products since for the same crude you obtain less PMS/DPK/AGO.
So why wud anyone [OMC or retail customer] even buy RMS? In other words as a consumer... why would I buy RMS vs PMS?

So if I do not buy RMS, who does?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#1353 Posted : Friday, February 18, 2011 10:32:08 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,380
Location: Nairobi
milken wrote:
VituVingiSana wrote:
Question to @milken

Why does RMS (Regular Petrol) cost more than PMS (Super Petrol)?

http://www.nation.co.ke/...-/111sjhcz/-/index.html



Because it comes from the refinery and not imported. The refinery is obsolete hence a lot of low value products (fuel oil and fuel loss. This means products from the refinery will cost more than imported products since for the same crude you obtain less PMS/DPK/AGO.

Please list the products from most preferred to the least. Thanks!
BTW, I thought RMS was preferable to DPK or AGO. Isn't DPK [except Jet A-1] the least desirable?
Does KPRL produce Jet A-1?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
milken
#1354 Posted : Friday, February 18, 2011 11:08:25 AM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
@VituVingiSana

Let me answer differently.

When you buy crude at say 40 bob a litre you need to obtain products worth more than the 40 bob to make a profit. The refinery (at least the Kenyan one) will use some of your product for own operations and then produce LPG, AGO, PMS, RMS DPK Fuel Oil and Bitumen in various ratios.

By refining crude, you have fore gone importing refined products, hence the value of the product from the refinery should more or less be in line with international prices. (i.e the profit will be Value of crude refined less the Value of the refined products obtained from the refining) With the unit value being the international price of that product plus shipping cost. (In industry parlance the imported price parity or Hydrocarbon Values)

Considering that each of the products has a different price, it is therefore desirable to obtain high value products. International prices for AGO, Jet and PMS are more or less similar hence the three will be more valuable. Fuel Oil's value is about 60% that of the other three. Hence a refinery that produces more Fuel than the AGO, DPK and PMS will lead to losses. However, a marketer will have to balance the refinery output with product demand. Hence even is say DPK has more value that AGO, there might be less demand.

To your question on Jet now

Other that impurities, statics, water content and freezing point, there is no difference between DPK and Jet A-1. Virtually all imported DPK meets the Jet A-1 specs and vice versa. KPRL produces Jet A-1 but the demand for that product (like all other products) is high (higher than PMS) as such quite a substantial percentage has to be imported)

The only difference between RMS and PMS is the octane rating which is the fuel's ability to withstand detonation on ignition. Modern engines with higher compression ratio will require high octane fuel than older engines. Additionally, new direct injection technology e.g GDI for Mitsubishi, D4 for Toyota, FSI for Audi/VW require even higher octane rating (about 95) otherwise the engine will lose efficiency in a matter of time.
Itari muting'oe ihuragwo ngi ni Ngai
VituVingiSana
#1355 Posted : Friday, February 18, 2011 11:27:34 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,380
Location: Nairobi
@milken. Thanks!

BTW, you had an interesting stat... that Jet A-1 has a HIGHER demand than PMS... Wow! Seems KQ should get into direct imports or just contract an OMC to be the lead buyer & just pay a premium for handling!

So can the RMS can be 'upgraded' to PMS?
All the retail stations I go to [mostly KK, no prize to figure out why] have PMS but not RMS... So who buys the RMS?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
milken
#1356 Posted : Friday, February 18, 2011 11:37:36 AM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
VituVingiSana wrote:
@milken. Thanks!

BTW, you had an interesting stat... that Jet A-1 has a HIGHER demand than PMS... Wow! Seems KQ should get into direct imports or just contract an OMC to be the lead buyer & just pay a premium for handling!

So can the RMS can be 'upgraded' to PMS?
All the retail stations I go to [mostly KK, no prize to figure out why] have PMS but not RMS... So who buys the RMS?


KQ already buys on that basis (landed cost plus a premium) but the monster is the international price.

RMS= watu wa gari mzee.
Itari muting'oe ihuragwo ngi ni Ngai
VituVingiSana
#1357 Posted : Friday, February 18, 2011 12:21:47 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,380
Location: Nairobi
milken wrote:
VituVingiSana wrote:
@milken. Thanks!

BTW, you had an interesting stat... that Jet A-1 has a HIGHER demand than PMS... Wow! Seems KQ should get into direct imports or just contract an OMC to be the lead buyer & just pay a premium for handling!

So can the RMS can be 'upgraded' to PMS?
All the retail stations I go to [mostly KK, no prize to figure out why] have PMS but not RMS... So who buys the RMS?


KQ already buys on that basis (landed cost plus a premium) but the monster is the international price.

RMS= watu wa gari mzee.
Hold on... If PMS [higher octane] is CHEAPER than RMS [lower octane]... why would anyone want to use RMS?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Gordon Gekko
#1358 Posted : Friday, February 18, 2011 1:55:21 PM
Rank: Elder

Joined: 5/27/2008
Posts: 3,760
Ngai fafa, PMS = Pre Menstr*** ****** FURAHIDAY!!
chemos
#1359 Posted : Friday, February 18, 2011 2:25:11 PM
Rank: Elder

Joined: 11/28/2006
Posts: 1,799
9 bob..... mbona sasa hio buy order ilienda thru.......
cnn
#1360 Posted : Friday, February 18, 2011 2:34:26 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
chemos wrote:
9 bob..... mbona sasa hio buy order ilienda thru.......

Ouch!.But i wish i had plenty of cash.
238 Pages«<134135136137138>»
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