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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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joga bonito wrote:Spikes wrote:jerry wrote:Liv wrote:joga bonito wrote:Spikes wrote:joga bonito wrote:I wonder whats the formula used by ERC, 1 barrel= 159 liters, 1 litre of petrol= 90 kes while 1 barrel= 30USD meaning 1 liter should be 19 kes. You have forgotten the fact that your government is a den of thieves. what will happen when there will be nothing left to be stolen?
@Joga,
Don't allow yourself to be guided by ignorant people. You will soon be like them....
A barrel of crude oil will need to be refined before the refined products are shipped to Kenya. Out of it the following are generated
LPG
Premium fuel,
Regular fuel
Jet oil
Kerosine
Diesel
Fuel oil
Bitumen for making roads.
All the above are produced in certain proportions and the price of the Barrel must be allocated accordingly. High value products like LPG and premium fuel are allocated higher cost than bitumen and fuel oil per litre.
On top of that the cost of shipping and hauling, import / custom duties, VAT taxes and other related charges like clearing and forwarding are loaded to the base price. The companies that have invested in the import, shipping and stocking of the products must get some return on their investments. The Retailer / dealers must pay salaries and get a return on their investments and so the mark ups are added there too.
All those are added up to get to your price of Shs 90-100 per litre for premium super gas.
If you want to know whether the consumers are overcharged in Kenya, you should compare the prices per litre in USD with other countries. Our prices in Kenya are lower than many other oil importing countries. And I know you (@Liv) are not on Gok payroll. Are the rates for Jan/Feb out? @Jerry what is your take on Kenyan corporate greed? @Liv well put, but you still agree that more than 50% of the 90-100 price is govt tax What do you expect, the govt builds roads for "free" (You have no toll roads), education for most is free, maternal care is subsidized where is this money coming from? "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: Member Joined: 7/3/2014 Posts: 245
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murchr wrote:joga bonito wrote:Spikes wrote:jerry wrote:Liv wrote:joga bonito wrote:Spikes wrote:joga bonito wrote:I wonder whats the formula used by ERC, 1 barrel= 159 liters, 1 litre of petrol= 90 kes while 1 barrel= 30USD meaning 1 liter should be 19 kes. You have forgotten the fact that your government is a den of thieves. what will happen when there will be nothing left to be stolen?
@Joga,
Don't allow yourself to be guided by ignorant people. You will soon be like them....
A barrel of crude oil will need to be refined before the refined products are shipped to Kenya. Out of it the following are generated
LPG
Premium fuel,
Regular fuel
Jet oil
Kerosine
Diesel
Fuel oil
Bitumen for making roads.
All the above are produced in certain proportions and the price of the Barrel must be allocated accordingly. High value products like LPG and premium fuel are allocated higher cost than bitumen and fuel oil per litre.
On top of that the cost of shipping and hauling, import / custom duties, VAT taxes and other related charges like clearing and forwarding are loaded to the base price. The companies that have invested in the import, shipping and stocking of the products must get some return on their investments. The Retailer / dealers must pay salaries and get a return on their investments and so the mark ups are added there too.
All those are added up to get to your price of Shs 90-100 per litre for premium super gas.
If you want to know whether the consumers are overcharged in Kenya, you should compare the prices per litre in USD with other countries. Our prices in Kenya are lower than many other oil importing countries. And I know you (@Liv) are not on Gok payroll. Are the rates for Jan/Feb out? @Jerry what is your take on Kenyan corporate greed? @Liv well put, but you still agree that more than 50% of the 90-100 price is govt tax What do you expect, the govt builds roads for "free" (You have no toll roads), education for most is free, maternal care is subsidized where is this money coming from? Heavy taxes block Kenya's economy from cheap oilIn the world of securities, courage and patience become the supreme virtues after adequate knowledge and a tested judgment are at hand.
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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Liv wrote:joga bonito wrote:Spikes wrote:joga bonito wrote:I wonder whats the formula used by ERC, 1 barrel= 159 liters, 1 litre of petrol= 90 kes while 1 barrel= 30USD meaning 1 liter should be 19 kes. You have forgotten the fact that your government is a den of thieves. what will happen when there will be nothing left to be stolen?
@Joga,
Don't allow yourself to be guided by ignorant people. You will soon be like them....
A barrel of crude oil will need to be refined before the refined products are shipped to Kenya. Out of it the following are generated
LPG
Premium fuel,
Regular fuel
Jet oil
Kerosine
Diesel
Fuel oil
Bitumen for making roads.
All the above are produced in certain proportions and the price of the Barrel must be allocated accordingly. High value products like LPG and premium fuel are allocated higher cost than bitumen and fuel oil per litre.
On top of that the cost of shipping and hauling, import / custom duties, VAT taxes and other related charges like clearing and forwarding are loaded to the base price. The companies that have invested in the import, shipping and stocking of the products must get some return on their investments. The Retailer / dealers must pay salaries and get a return on their investments and so the mark ups are added there too.
All those are added up to get to your price of Shs 90-100 per litre for premium super gas.
If you want to know whether the consumers are overcharged in Kenya, you should compare the prices per litre in USD with other countries. Our prices in Kenya are lower than many other oil importing countries. Hiyo formula hata mama mboga anajua!  John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Spikes wrote:Liv wrote:joga bonito wrote:Spikes wrote:joga bonito wrote:I wonder whats the formula used by ERC, 1 barrel= 159 liters, 1 litre of petrol= 90 kes while 1 barrel= 30USD meaning 1 liter should be 19 kes. You have forgotten the fact that your government is a den of thieves. what will happen when there will be nothing left to be stolen?
@Joga,
Don't allow yourself to be guided by ignorant people. You will soon be like them....
A barrel of crude oil will need to be refined before the refined products are shipped to Kenya. Out of it the following are generated
LPG
Premium fuel,
Regular fuel
Jet oil
Kerosine
Diesel
Fuel oil
Bitumen for making roads.
All the above are produced in certain proportions and the price of the Barrel must be allocated accordingly. High value products like LPG and premium fuel are allocated higher cost than bitumen and fuel oil per litre.
On top of that the cost of shipping and hauling, import / custom duties, VAT taxes and other related charges like clearing and forwarding are loaded to the base price. The companies that have invested in the import, shipping and stocking of the products must get some return on their investments. The Retailer / dealers must pay salaries and get a return on their investments and so the mark ups are added there too.
All those are added up to get to your price of Shs 90-100 per litre for premium super gas.
If you want to know whether the consumers are overcharged in Kenya, you should compare the prices per litre in USD with other countries. Our prices in Kenya are lower than many other oil importing countries. Hiyo formula hata mama mboga anajua!
If you have nothing to say, don't say it here!!
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Rank: Member Joined: 1/22/2015 Posts: 682
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joga bonito wrote:Spikes wrote:joga bonito wrote:I wonder whats the formula used by ERC, 1 barrel= 159 liters, 1 litre of petrol= 90 kes while 1 barrel= 30USD meaning 1 liter should be 19 kes. You have forgotten the fact that your government is a den of thieves. what will happen when there will be nothing left to be stolen? That's when donor funding jumps in and offers life support in exchange for lucrative contracts. And if it ever gets elephant, the crooks usually have shifted all their children majuu with a few houses and investments there, they'll just move. This Kenya... 
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Iran's sanctions lifted. More oil to be pumped, lower prices expected. "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: 9/29/2006 Posts: 2,570
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murchr wrote:Iran's sanctions lifted. More oil to be pumped, lower pri expected.
...and that means more disposable cash for Iran to buy Kenyan tea! The opposite of courage is not cowardice, it's conformity.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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http://www.bloomberg.com...reign-reserve-stockpile
The Chinese are burning through their reserves which do not look so formidable against M2. If they keep up the pace trying to create a buffer for the yuan then they are going to run out of ammo. If they take a back seat capital outflows will be of a massive scale... Catch 22 situation. Easing the monetary policy will only work for so long, since even fiddled GDP metrics seem to be cratering. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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lochaz-index wrote:http://www.bloomberg.com/news/articles/2016-01-19/the-weak-spot-in-china-s-3-3-trillion-foreign-reserve-stockpile
The Chinese are burning through their reserves which do not look so formidable against M2. If they keep up the pace trying to create a buffer for the yuan then they are going to run out of ammo. If they take a back seat capital outflows will be of a massive scale... Catch 22 situation.
Easing the monetary policy will only work for so long, since even fiddled GDP metrics seem to be cratering.
As long as the USD is strong capital flight is inevitable in China, Kenya and elsewhere. Some of the outflow from China tho is productive they have been paying Dollar denominated debt "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: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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some cartoons  ....the Dow Shorting haven, acres to fall. The Jan fall has been spectacular!  @SufficientlyP
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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The markets are indeed going absolutely nuts yet the critical USD pegs haven't been broken. $/Yuan still below 6.83 level while the USD/riyal is still intact for 30 years and running. When these pegs get devalued as their controllers get knocked out by the market that's when markets will begin falling off the cliff. Saudi index is already hinting that it's about to fall off the cliff!  $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 9/23/2010 Posts: 2,221 Location: Sundowner,Amboseli
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hisah wrote:The markets are indeed going absolutely nuts yet the critical USD pegs haven't been broken. $/Yuan still below 6.83 level while the USD/riyal is still intact for 30 years and running. When these pegs get devalued as their controllers get knocked out by the market that's when markets will begin falling off the cliff. Saudi index is already hinting that it's about to fall off the cliff! shorting riyal awaiting the inevitable devaluation can get one in the monies!! @SufficientlyP
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Sufficiently Philanga....thropic wrote:hisah wrote:The markets are indeed going absolutely nuts yet the critical USD pegs haven't been broken. $/Yuan still below 6.83 level while the USD/riyal is still intact for 30 years and running. When these pegs get devalued as their controllers get knocked out by the market that's when markets will begin falling off the cliff. Saudi index is already hinting that it's about to fall off the cliff! shorting riyal awaiting the inevitable devaluation can get one in the monies!! The Saudi's are getting clobbered in every imaginable way. Government fiscal largesse is no longer sustainable which I think is their biggest problem yet as it could breed a revolt against a tyrannical monarch. Depegging outright is also fraught with risks chief among them imported inflation...they might hold on for a little while by depleting reserves till the yuan gives way. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Member Joined: 3/10/2008 Posts: 301 Location: Abu Dhabi
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I doubt Saudi will depeg the currency.
My take - they will hold on to the excess supply, though painful, till most of the US producers are driven off. Thereafter, OPEC just needs to cut 10% of their production (3Mio bbl/day) to counter the current excess of 2Mio Barrels per day, and prices will be back up - though not to $ 100's.
Meanwhile, the c. $100 B deficit will be funded by a combination of debt (expected $ 32B in 2016), utilising their $ 600B odd reserves, and subsidy reduction (last week local fuel prices were hiked by 50%). Subsidy reduction is taking place across GCC, and there's also talk of VAT/Sales tax.
Yesterday, banks were banned from trading SAR options, as the trades have been pressuring the forwards (on deltas).
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Something huge is about to blow the the can of worms/pandoras box wide open. The three week global market sell-off is a big red flag and not just happenstance. The Fed hike amongst other factors probably narrow down the time frame for such an event to Q1 2016. Equities worldwide are going to have a very tough year and then some deep into 2017. The dollar has been taking a breather and should resume a monster rally as things become chaotic. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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lochaz-index wrote:Something huge is about to blow the the can of worms/pandoras box wide open. The three week global market sell-off is a big red flag and not just happenstance. The Fed hike amongst other factors probably narrow down the time frame for such an event to Q1 2016. Equities worldwide are going to have a very tough year and then some deep into 2017. The dollar has been taking a breather and should resume a monster rally as things become chaotic. In agreement. The markets have been going bananas in a very unusual behaviour. Rarely do trading desks open the year with a huge fist banging on the offload button!
This is why I'm fully focussed on the two USD pegs - $/yuan and $/Riyal. Something is about to blow the lights out.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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A History Of Interest RatesFor those that like to follow the interest rate pattern way back into ancient times of Mesopotamia! Interest rates have never been this low in history. When the tide turns, capital will finally get its fair share of returns. 7 years of zero interest rates is incredible and I highly doubt this experiment will ever be repeated in centuries to come! Zero bid market will be a crazy playground for bonds. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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China tightens controls on moving money overseasQuote:Chinese banks are delaying and even blocking some foreign exchange transactions under a decision by the central government to limit capital leaving the country, a move that could hurt demand for foreign assets including Australian property.
At meetings on Monday and Tuesday afternoon senior bank executives were told by the government to toughen up their capital controls.
A former adviser to China's central bank, Yu Yongding, said the decision to tighten existing capital controls was "useful but not sufficient" because the yuan is overvalued. "If they keep the exchange rate unchanged it encourages outflows because the [yuan] is very expensive to hold," he said. "They need to allow the [yuan] to devalue to market equilibrium."
An Australian real estate agent based in Shanghai, Scott Kirchner, said the tougher capital controls could "cause problems for Australian developers as clients may not be able to get their money out of China".
UBS China economist Wang Tao said the "top concern" of markets is capital outflows getting "out of control, leading to a sudden tightening of domestic liquidity and sharp depreciation of the currency, resulting in market turbulence in China and elsewhere in emerging markets"
Capital controls will get even more draconian as we spiral faster into the bidless blackhole. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Looking at Britam one year later.....all I can say is poleni sana "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: 2/26/2012 Posts: 15,980
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Dow closes down 200 points as oil plunge, growth concerns weighConcerns: Poor numbers from China, Oil down again to $30 a barrel, Feds statement "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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