vin wrote:I did not get what that bald idiot was talking about.Ati interest rate ya financing fuel sourcing.Kwani sisi ni watu wa kuletewa issues kama hizo?I still feel that with the current down ward inters crude,fuel should be going for like kes 100.
Very informative piece of info right there. So the licensed importers of crude do not have adequate working capital and have to finance by borrowing from banks or wherever at exhorbitant rates and passing on the same to the consumer. The supposed benefits of tendering and only allowing one importer at a timer means then that there is no real benefit to the bulk import system. It would be interesting to see what would happen if there were various competing importers. I am willing to bet my left leg that the price of fuel would be much much cheaper.
Rationale;
(1) Players import what they can afford without resorting to borrowing
(2) The competition among distributors would force prices down
(3) It would discourage hoarding by 1 player
(4) It would encourage intradate between players and could even encourage players to explore the petroleum futures market.
(5) It would allow shipping in of products through out the year and eliminate the artificial shortages that winning bidders are known to create in order to increase prices