They still have oil bought at over $100 in their storage. Hence the small price reduction. If crude oil prices remain stable below $100 then there should be a further price reduction

Actually the point raised is serious. Whenever the prices rise, the companies are ver fast at revising their prices upwards but not when it comes to revising them downwards.
They always say like @jwatesh ati they have to finish what they had bought before. I have never heard a thing on why they cannot finish what the had in their tanks if they had bought it cheaper before
increasing the prices upwards. If Kenyans do nothing, they will always be sc****d. I do not have the histroy but sometimes back even b4 the gava brought that famous tax ya fuel the price of the barrel had gone to more than 125$ there has been a reduction to 85$
about 40$ per barrel the best at calculations can tell us how much people are supposed to pay.

Canada and Mexico.. They get more than half of their crude Oil from those two. then the Gulf countries follow.

Does it matter where you import crude from? There shouldn't be much difference between prices across all oil producing countries.

Developed countries have a better supply chain management( fewer middle men) and of course better consumer protection laws!

National Oil becomes first to set diesel price below 100, a shilling below regulator’s price http://www.businessdaily.../-/8joou0z/-/index.html

I found there's a concept called 'replacement cost profit' for oil companies which is the current cost of oil supplies. In a declining oil market, oil companies suffer losses from the stocks they hold. It appears ERC formulas protected importers a bit, at our expense of course.

Enrich the thread!

@shocks,are you saying that the contributions are unintelligent and U have the gauge to know which or the way threads natural flow should proceed.sometimes its not what's written but what unwritten that exposes the frustrations.the cartels should be dealt with by legislation.ooh my bad,the mpigs are part of the cartels.conclusion,price will continue to be high until ...well never hata kama tunakamua oil turkana.

BUT this time lag only appears (is clearly visible) when oil prices decrease - benefit to consumers is delayed.

Do we have tangible examples where murban crude oil prices increased, but due to time lag, the pump prices quoted in Kenya decreased due to old stock prices?

On monday, I expect the pump prices to be at sub 100,I have done an analysis and I think ERC is busy shafting us.

For the same period, May-Dec 2014, ERC prices have cumulatively droppedby a mere 7% while the world prices have cumulatively dropped by over 36%.For the world crude oil prices,I have taken the average daily prices to arrive at the corresponding ERC periods which runs from 15-14 of every month.

Month Pump Change
May-June 114.73
June-July 114.62 0%
July-Aug 115.86 1%
Aug-Sept 116.6 1%
Sept-Oct 111.64 -4%
Oct-Nov 110.89 -1%
Nov-Dec 106.8 -4%


Month World avg prices Change
May-June 103.28
June-July 104.64 1%
July-Aug 99.51 -5%
Aug-Sept 93.58 -6%
Sept-Oct 90.25 -4%
Oct-Nov 79.75 -12%
Nov-Dec 70.68 -11%

Todays crude oil prices are hovering around US $ 63.

I do not think the FX,refinery costs, and transportation costs are a major cause for the marginal drop in pump prices in Kenya

Shafting left right and centre.


BTW does anyone understand why they don't regulate LPG?