From Uganda:

Fuel prices increase as supply runs low. The price of fuel has gone up across the country as international prices continue to rise while the UGX depreciates more against the USD. The rise in the local pump prices leaves several filling stations dry. The fuel shortage and high prices have caused a sharp rise in the cost of transport and commodities. By yesterday, a litre of petrol was trading at UGX 3,400 (USD 1.4), diesel at UGX 2,950 (USD 1.2) at most filling stations in and around Kampala. Fuel prices had between October 2010 and January 2011 dropped to as low as UGX 2,950 (USD 1.2) for petrol, UGX 2,340 (USD 0.97) for diesel. The country manager Shell Uganda, attributed the shortage to supply problems experienced by the central procurement system that is operated by the Kenyan government stating that there was a disruption in the supply system adding that one of the companies that were contracted to supply fuel to Kenya and to Uganda, had not delivered supplies in time which has led to the shortage. Last week, Business Daily in Kenya reported that the National Oil Corporation of Kenya (Nock) had not delivered a consignment of 56,500 metric tonnes of fuel that had been schedule to be delivered to Mombasa hence leading to a shortage in diesel supplies. Energy analysts also contend that the fear of oil shortage from Libya, which exports about 1.6m bpd, is raising a lot of supply uncertainty on the market and therefore the surge in price. (Source: The Daily Monitor)

OMC'S should gang up on NOCK and sue their pants off...i wouldnt mind if their declared bankrupt like their pals KPC.

Its only 1yr we get proffessionals running our ministries after long times of mis-management and politics,it will be easy to uproot nyoike without baks and kiraitu.

Press Release [from NOCK]

*Nairobi, Monday 14th March 2011*

The National Oil Corporation wishes to clarify the following facts;

*About the Pricing of Diesel*

National Oil Corporation imported 56,500 metric tonnes of diesel on Tuesday the 1st of March 2011. Industry practice and rules are such that we shall pay our supplier at the price of the month of loading. We therefore can not
sell at the price of February, whereas the diesel loaded in March. The OTS rules allow an importer to sell their fuel at the price of the month at which the fuel was loaded. It should be noted that National Oil Corporation did not increase the price of importation of the consignment from USD 13.48 per metric tonne which was way below everybody else.

We should also appreciate the geopolitical situation we are witnessing
today. The prices of fuel have gone up virtually everywhere in the world,
especially in oil producing countries which have been experiencing internal unrest. This is the reason for increase in local fuel prices and not any single consignment of imported diesel.


National Oil has noted that some marketers are of the view that the diesel import is too expensive. Market practice rules of pricing have been applied
and National Oil can not sell the imported diesel at a loss. Due to events
in the Middle East, any subsequent consignments of fuel expected into the
country are projected to cost even more than the diesel that National Oil
currently has and the impact of the Middle East unrest and piracy on the fuel prices is being felt worldwide.



*About delays in vessel arrivals; *

Delays in vessel arrival are common particularly with the current situation in the high seas. Indeed the vessel that discharged immediately before National Oil was also late by more than one week.

*About Discharging;*

The vessel that brought in the 56,500 metric tonnes of diesel for National Oil arrived at the port of Mombasa on Tuesday the 1st of March 2011; within the date range of 1st to 3rd of March 2011 that National Oil had undertaken
to deliver the fuel. The vessel has already discharged.



*About Penalties;*

The diesel fuel arrived at the port of Mombasa on Tuesday the 1st of March 2011. National Oil shall not be penalized for default since the consignment of fuel arrived within the 14 day delivery window granted under the rules of
the OTS tender system.

*About National Oil’s capacity to import;*

Contrary to allegations that National Oil do not have the capacity to import such huge consignments of fuel, the 56,500 metric tonnes diesel has already landed in the country.

*About the cost of importation of the consignment;*

National Oil has imported 56,500 metric tonnes of diesel fuel at the competitive quote of USD 13.48 per metric tonne. Previous and subsequent
tenders have come in at significantly higher premiums.

*Comparisons in pricing;*

The March OTS tender for the supply of diesel was awarded on the 22nd of February 2011. National Oil did not participate in that tender as our hands were full with the February tender. The marketer who won had tendered at USD
31.15 per metric tone which in comparison is higher than National Oil cargo tendered at USD 13.48 per metric tonne.

*About importation of the second consignment;*

The second consignment of fuel that was to be imported by National Oil was to be 62,000 metric tonnes of diesel fuel that was to be imported at the competitive price of USD 13.48 per metric tonne. This however was not to be as the consignment was reduced significantly to 45,000 metric tonnes.
Naturally, this meant that economies of scale would not apply. With the quantities so significantly reduced (by 27.4%), National Oil declined to supply the fuel at the tender price quoted. The OTS rules allow the marketer
that has won the OTS tender to withdraw from supply if the quantity to be imported is altered by more than 25%.This prompted the Ministry of Energy to float another tender for this reduced quantity


*About fulfilling the mandate of stabilizing prices;*

By reducing the cost at which fuel is landed in the country, National Oil is
effectively reducing the end cost at which the consumers will purchase the
fuel. *Please note that the costs at which the fuel is imported constitute
part of the calculation to determine the fuel caps that have been introduced
by Government.*

*About stocks kept by marketers;*

Marketers keep a minimum of 21 days operating stocks so there was never a risk of shortage.

*National Oil’s commitment;*

National Oil reiterates its commitment to reducing the cost of fuel to the
Kenyan consumer. The figures illustrated above go to show just how much
National Oil is committed to delivery of fuel at the best possible prices.



For more information, please contact,



*Sumayya** H. Athmani*

Acting Managing Director

National Oil Corporation of Kenya

Tel: 020 6952000

SPACE BAR IMEFAIL AMA?

@VVS Can KK be making a killing by importing refined fuel as opposed to buying from KPRL.Because I think its cheaper importing refined fuel than buying what Nock is selling.

Anyone with insider info as to what to expect from KK for upcoming FY2010 announcement?
Do we expect a bonus,dividends or both?

Oil Firms Push For Higher Fuel Prices

Things getting elephant for NOCK. I believe the oil companies should stick to their guns and leave NOCK holding the "cheap" diesel it imported suspiciously with no penalties from the tendering committee. Heads need to roll at NOCK and MOE

So have I been vindicated when I deride the crooks at MoE, KPC & NOCK?

LOL... KK rocks!