@SittingPretty wrote this in April 2015 so it needs updating. If someone can ask him to do so for us...

@Maichblack I understand your vile it can be frustrating. But let me shed some light atleast with figures and not stories.
Using an example of Super petrol for the month of march 2015.
Note that I have excluded any decimals
FOB= USD592/Mt
Premium/freight/insurance=USD26/MT
Port charges/KMA/Shipping/Inspection(SGS)=USD18/MT
Total landed cost(Mombasa)=USD636/MT
Usd rate Ksh92.5
Approx Landed Cost=Ksh43 per liter
Taxes = Ksh31 (+/-0.5)
Tax paid cost= Ksh74 per liter
Kenya Pipeline=Ksh3.7 per liter
Transport to station( Truck)= Ksh0.7 per liter
Station cost= Ksh78 per liter

Note:
1. OMC (eg Total/Vivo) has not paid salaries,office rent, depot fees, finance costs and other admin costs.
2. Station operator(mostly franchised) needs to also pay its bills, maintenance etc.

Lets assume the admin costs for the station and OMC is Ksh3 per liter each.
Station cost= Ksh78 per liter
Admin Cost= Ksh6 per liter
Total cost at station= Ksh84 per liter

Well ideally that should be the price at the station??? Fortunately this are not Non profit orgs.

ERC price for Nairobi is Ksh89.35
Profit= 89.35-84
= Ksh5.35
Now that has to be shared between the OMC and the station operator.
And of course GOK at the end of the year.

Hope this helps.
Disclaimer: I do not work for ERC or any GOK institution.
I am only have a few KK stocks.

@Gatheuzi - That's the max for the Dealer and OMC combined.
From a Gross Margin perspective it's less than 10% on average (Diesel + Petrol) vs 10%+ last year.

I see that ERC is publishing more detail (or making it more widely available in easier to understand formats) to show that the international crude price increases are the primary reason for the increase in retail prices.

Oil Futures have dropped since 1st Feb so hopefully the benefits will flow down to OMCs (& eventually us) in Feb-March.

Can the large (or efficient) OMCs take market share from the Independents - to maintain/sustain profits - which may face financing or storage constraints?
[As a KK shareholder, I hope so]

Oil prices are on upward trend again due to weakening of the dollar

Total kenya riding on parent company which bought engie and exploration interests

Is there a secret change of guard through share buying?

What does that mean?

Doesn't it cost 1% (or more) to do so? [Even with a discount on the brokerage fees, that's quite a hefty charge for statutory fees on the Buy and Sell]
Is there a cheaper method?

Ohana be making money come rain or shine. Low margin business but high volumes means ka-ching!
Plus KK can piggyback their additional volumes/cargoes on these OTS cargoes.

Any surprises today or is it Next week?

Expecting a Bonus this time

It may climb to 19 Kshs after the Bonus gift 1 for every 10



If it doesn't rain then a DVD of 50cents

Remember it could be today or next week

Is a major announcement expected?