Kenya: Oil Dealers Raise Pump Prices The company has continued to grow over the years. due to the demand of fuel in the Kenya market, the company tend to begin importing fuel from a trust worth suppliers We are regularly Selling: diesel, kerosine, super. We are regularly Buying: diesel, kerosine. Nairobi — Major oil dealers in most parts of the North Rift have increased fuel prices to cash in on the festive season, sparking protests from motorists. They have raised fuel prices by between Sh3 and Sh5 due to what they attributed to “impending shortages caused by increased crude oil prices in the international market.” But some of the independent oil dealers have maintained the prices due to low demand for petroleum products, especially diesel, in the region. A spot check by the Nation established that Caltex was selling a litre of unleaded premium at Sh83.40, regular at Sh84.40 and diesel at Sh73.40. The independent dealers in the town were selling a litre of regular at Sh81.90 and diesel at Sh71.90. Fuel prices had reduced drastically early this year with diesel going for less than Sh67 a litre. “The increased prices have been caused by a decline in supply because some of the oil marketing companies are stocktaking,” said Mr Hezekiah Kosgei, an independent oil dealer in Eldoret. Contact TINSEL CARGO & OIL COMPANY COMMERCE HOUSE 3RD FLOOR, SUITE 311, MOI AVENUE, NAIROBI. P.O. BOX 79456-00200 NAIROBI, KENYA TELE FAX: +254-20-2229781, Cellphone: +254-722-761587, +254-734-939308 Website: www.tinselcargo.com EMAIL: info@tinselcargo.com

1. Oil dealers in kenya
Kenya: Oil Dealers Raise Pump Prices
The company has continued to grow over the years. due to the demand of fuel in the
Kenya market, the company tend to begin importing fuel from a trust worth suppliers
We are regularly Selling: diesel, kerosine, super.
We are regularly Buying: diesel, kerosine.
Nairobi — Major oil dealers in most parts of the North Rift have increased fuel prices to
cash in on the festive season, sparking protests from motorists.
They have raised fuel prices by between Sh3 and Sh5 due to what they attributed to
“impending shortages caused by increased crude oil prices in the international market.”
But some of the independent oil dealers have maintained the prices due to low demand
for petroleum products, especially diesel, in the region.
A spot check by the Nation established that Caltex was selling a litre of unleaded
premium at Sh83.40, regular at Sh84.40 and diesel at Sh73.40.
The independent dealers in the town were selling a litre of regular at Sh81.90 and diesel
at Sh71.90. Fuel prices had reduced drastically early this year with diesel going for less
than Sh67 a litre.
“The increased prices have been caused by a decline in supply because some of the oil
marketing companies are stocktaking,” said Mr Hezekiah Kosgei, an independent oil
dealer in Eldoret.
But he fears that the fuel prices are likely to increase further due to increased demand
during the festive season.
Oil prices retreated to near $73 (Sh5,475) a barrel on Tuesday as Opec ministers
indicated they would leave crude production levels unchanged while seeking to ensure
compliance with members’ output quotas.

2. But some motorists claimed that most petroleum marketing outlets in the region were
taking advantage of the festive season to exploit them.
“This is mere exploitation due to the lack of price controls,” matatu operator Peter
Koech said.
The motorists petitioned the government to impose price controls to rein in marketing
companies that are intent on increasing pump prices.
Last year, the government promised to implement fuel price controls following the
escalating cost of petroleum products. Petrol prices rose to Sh110 a litre, while diesel
prices climbed to Sh105 a litre due to increased crude oil prices.
Kenya: New Oil Pricing System Sparks Dealers’ Protests
Leading oil marketers on Monday reacted angrily to the reintroduction of oil price
controls by the government, saying they would discourage investment and economic
expansion.
Shell and KenolKobil questioned the basis for the pricing structure that caps the
maximum margin for oil wholesalers at Sh6 per litre of petrol and Sh3 for retailers,
unveiled by the minister Kiraitu Murungi, saying the Energy (Petroleum Pricing)
Regulations 2010 published on Monday did not consider the heavy investments made by
oil firms.
The formula covers most of the elements but it does not recognise investment in depots.
Where are the incentives for marketers to invest in petroleum handling infrastructure?”
said Kenya Shell country manager Jimmy Mugerwa.
“The Sh6 -litre whole sale margin is not clear. There is no basis on how that was arrived
at. Transport and delivery has been pegged at Sh7.50 per litre. It costs us Sh15 to
transport one litre per kilometre using the big haulage companies,” said Mr Mugerwa.
The regulations come into force on December 15 and will prevail for one month before
they are adjusted again in mid January in view of the movements in crude oil prices.
“The price controls suggestion is surprising. There has been no consultation by the
Government or ERC with major oil industry players who have invested heavily in
Kenya,” said KenolKobil’s managing director Jacob Segman.
“The price controls must be transparent and the result of regular reviews by
independent, professional, third party bodies and must take into account all cost factors
influencing the marketing of petroleum products, especially infrastructure costs and the
damaging effect of system inefficiencies,” he added.

3. In addition to the price caps, the Government has allocated to the State owned National
Oil Corporation (Nock) , one third of refined products in a move that sector players say
will encourage anti -competitive behaviour.
“We have concerns about the multirole involvement of the Government in the
downstream oil industry, by controlling in land infrastructure , regulating the industry,
acting as an OMC through the National Oil Corporation ( Nock) and most recently in
importation of refined products,” said Mr Segman in a statement copied to the Capital
Markets Authority( CMA).
On Monday, Nock announced price adjustments on its diesel products that it recently
imported as part of the new mandate it acquired mid this year intended to stabilise fuel
prices in the country.The State firm is selling diesel at Sh84 in Nairobi compared to an
average of Sh88-91 posted by other marketers.
The Kenyan petroleum industry already faces some of the thinnest margins compared
with other industries due to high competition amongst marketers and the government’s
control of the oil import, storage and distribution process..
KenolKobil said prices for its products must reflect a fair return on investment even as it
pursues an expansionist strategy beyond the Kenyan business unit.
Kenya Oil Company unchanged on high volume
KENYAN COMPANY NEWS BITES STOCK REPORT Kenya Oil Company (62.NR)
closed unchanged at KES9.70. Compared with the NSE 20-Share index, which fell 10.2
points (or 0.2%) on the day, this was a relative price change of 0.2%. The volume was
4.5 times average trading of 643,098 shares. Price Change %1-day1-month1-
year62Unch-3%-84.1%Total Kenyan Market0%-3.4%10.7%NSE 20-
Share-0.2%-5.6%21.7% PRICE VOLUME DYNAMICS Volatility: the stock traded
between an intraday low of KES9.50 and a high of KES9.70, suggesting…
The African Oil Sector
Oil and Gas Energy Market Statistics in Kenya

4. The Kenyan Oil Sector
Contact
TINSEL CARGO & OIL COMPANY
COMMERCE HOUSE
3RD FLOOR, SUITE 311,
MOI AVENUE, NAIROBI.
P.O. BOX 79456-00200 NAIROBI, KENYA
TELE FAX: +254-20-2229781,
Cellphone: +254-722-761587,
+254-734-939308
Website: www.tinselcargo.com
EMAIL: info@tinselcargo.com