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Why I'm Still Paying 110/= Plus at the Pump
Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Why do I have a feeling that if these prices were left to the market forces there could be a possibility of the prices being lower, at least in some areas? http://www.businessdaily.../-/131s86xz/-/index.html
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Oil pump prices are the 8th wonder in the world in the way they defy any oil price crash period. Back in 2008 as GFC smashed oil prices the same thing happened. Pump prices simply defied the spectacular price crash. Same headlines are starting to pop up globally as consumers wonder why pump prices are not reflecting the spectacular fall yet again. But somehow when oil prices start to spike, pump prices rise as fast as the price rally!!! The crude cartel phenomenon   Click on the links below. Labour demands inquiry into cost of fuel as millions continue to be ripped offCrude oil prices not yet reflected at pumpsPetrol prices not falling fast enough: AA says they don't reflect reductions in oil costRetailers under pump as prices fall$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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[quote=washiku]Why do I have a feeling that if these prices were left to the market forces there could be a possibility of the prices being lower, at least in some areas? http://www.businessdaily...-/131s86xz/-/index.html[/quote] They say only 60% of the price is crude price dependent! The rest i.e 40% is taxes, levies... The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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The crude prices are at May 2009 prices. What was the price of diesel and petrol in Kenya in say August 2009? 73/- to 85/-? Someone is making billions here. Am buying more and more and more KK and Total (k) this Monday morning. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: New-farer Joined: 12/11/2014 Posts: 16
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Someone asked about the duty we pay per litre on fuel. Anyone with an idea?
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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Today Shell will make a killing! These guys are only selling V-power, which is not regulated by ERC as 'unleaded is finished?'. ERC should investigate if what that are doing is fair or anti-competition.
BBI will solve it :)
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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jerry wrote:[quote=washiku]Why do I have a feeling that if these prices were left to the market forces there could be a possibility of the prices being lower, at least in some areas? http://www.businessdaily...-/131s86xz/-/index.html[/quote] They say only 60% of the price is crude price dependent! The rest i.e 40% is taxes, levies... @jerry. The taxes referred to here are a % age of the oil price so thats not a good enough reason Secondly, it is irrelevant whether we buy crude or processed fuel. They are 1 and the same thing and react in the same way to market forces. Someone at erc is eating big. I saw the photo of the director general in todays nation sweating from over feeding "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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knight260 wrote:Someone asked about the duty we pay per litre on fuel. Anyone with an idea? 1.Excise duty Kshs.19.895 per litre 2.Road maintainence levy Kshs.9 per litre 3.Petroleum regulatory levy Kshs.0.05 perlitre 4.Petroleum development levy Ksh.0.40 per litre 5.Remission kshs.0.45 per litre Others 1.IDF 2.25% of the value of import 2.Railway development levy 1.5% of the value of import If Obiero did it, Who Am I?
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Swenani wrote:knight260 wrote:Someone asked about the duty we pay per litre on fuel. Anyone with an idea? 1.Excise duty Kshs.19.895 per litre 2.Road maintainence levy Kshs.9 per litre 3.Petroleum regulatory levy Kshs.0.05 perlitre 4.Petroleum development levy Ksh.0.40 per litre 5.Remission kshs.0.45 per litre Others 1.IDF 2.25% of the value of import 2.Railway development levy 1.5% of the value of import 1 to 5 totals to KSh 29.795. The opposite of courage is not cowardice, it's conformity.
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Rank: New-farer Joined: 7/1/2014 Posts: 12
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For retail site, the price for Super Petrol, Regular Petrol, Kerosene, and Automotive Diesel is set in accordance with the following formula:
Pr=Pw+mr+z
Where: -
Pr = the maximum retail price of Super Petrol, Regular Petrol, Kerosene, or Automotive Diesel applicable in shillings per liter,
Pw = the maximum wholesale price for Petrol, Regular Petrol, Kerosene, or Automotive Diesel
mr = the allowable maximum retail gross margin as set,
z = the delivery rate from the nearest wholesale depot to a retail dispensing site in shillings per liter as determined.
..............
Mr is fixed at KShs 3 per litre. Therefore in a falling costs environment, the Margin as a percentage of costs rises.
The Marketers are quietly making a killing.
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Rank: Elder Joined: 7/22/2009 Posts: 7,455
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Consulting_EAT wrote:For retail site, the price for Super Petrol, Regular Petrol, Kerosene, and Automotive Diesel is set in accordance with the following formula:
Pr=Pw+mr+z
Where: -
Pr = the maximum retail price of Super Petrol, Regular Petrol, Kerosene, or Automotive Diesel applicable in shillings per liter,
Pw = the maximum wholesale price for Petrol, Regular Petrol, Kerosene, or Automotive Diesel
mr = the allowable maximum retail gross margin as set,
z = the delivery rate from the nearest wholesale depot to a retail dispensing site in shillings per liter as determined.
..............
Mr is fixed at KShs 3 per litre. Therefore in a falling costs environment, the Margin as a percentage of costs rises.
The Marketers are quietly making . killing.
How is pw calculated? Hapo ndipo wizi iko!!! This is a secondary formula. We want the primary one with crude price, taxes etc. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 5/6/2008 Posts: 199
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Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2
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Rank: Member Joined: 10/8/2010 Posts: 446 Location: london
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tandich wrote:Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2 when the crude price goes up. pump prices will go up next day. This is the work of proper opposition to question the government otherwise someone somewhere is makinng a kill
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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african coloner wrote:tandich wrote:Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2 when the crude price goes up. pump prices will go up next day. This is the work of proper opposition to question the government otherwise someone somewhere is makinng a kill The "opposition" is in oil & gas business. Formally employed people often live their employers' dream & forget about their own.
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Rank: Member Joined: 2/16/2013 Posts: 123 Location: MSA
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tandich wrote:Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2 Easy guys, we don't get crude anymore but in distillates form ( diesel, super petrol and Kerosene) which may not fall proportionately with crude prices, but any way they have fallen. But generally lets say the marketers get approximately ksh6 to 10 per liter as total return from upto the pump. But those with only limited retail presence get an average of ksh2 per liter. In other circles the rods board want Road maintainence levy (Kshs.9 per litre) doubled. If they have their way, you may never have that smile while filling your tank. Timely advice is as lovely as golden apples in a silver basket. Proverbs 25:11
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Consulting_EAT wrote:For retail site, the price for Super Petrol, Regular Petrol, Kerosene, and Automotive Diesel is set in accordance with the following formula:
Pr=Pw+mr+z
Where: -
Pr = the maximum retail price of Super Petrol, Regular Petrol, Kerosene, or Automotive Diesel applicable in shillings per liter,
Pw = the maximum wholesale price for Petrol, Regular Petrol, Kerosene, or Automotive Diesel
mr = the allowable maximum retail gross margin as set,
z = the delivery rate from the nearest wholesale depot to a retail dispensing site in shillings per liter as determined.
..............
Mr is fixed at KShs 3 per litre. Therefore in a falling costs environment, the Margin as a percentage of costs rises.
The Marketers are quietly making a killing.
Yes I have been trying to hammer this point when oils prices dip margins increase. You can see the stampede into Kenol Kobil(2.04m shares) and total (609,000) shares traded
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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bird_man wrote:african coloner wrote:tandich wrote:Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2 when the crude price goes up. pump prices will go up next day. This is the work of proper opposition to question the government otherwise someone somewhere is makinng a kill The "opposition" is in oil & gas business.  If Obiero did it, Who Am I?
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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bird_man wrote:african coloner wrote:tandich wrote:Assuming petrol cost KES 100 before crude dropped. KES 60 (60%) is the cost of crude. If crude drops by 50%, the shilling depreciates 20% (90/75 KES in USD) and a further change and a further 20% for other cost increases I may not have accounted for. The cost of crude in the KES 100 litre should now be KES 43 and the fuel with taxt should cost me KES 83.
40 * 50% * 120% * 120% = 43.2
43.2 + 40 = 83.2 when the crude price goes up. pump prices will go up next day. This is the work of proper opposition to question the government otherwise someone somewhere is makinng a kill The "opposition" is in oil & gas business. Why does the gava need to be questioned, why can't they do the right thing up front and reduce the pump prices accordingly, or get out of the fuel regulation business if they are not willing to be fair arbiters "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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dunkang wrote:The crude prices are at May 2009 prices. What was the price of diesel and petrol in Kenya in say August 2009? 73/- to 85/-? Someone is making billions here. Am buying more and more and more KK and Total (k) this Monday morning. What was the avg rate for USDKES back in 2009 vs 2014? What about lending rates in 2009 vs 2014?
KK and total will make higher margins than 2013, but I don't think it'll be that spectacular.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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 possunt quia posse videntur
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