23 C
Saturday, August 8, 2020

Kenyans won’t get the big fuel price cuts in rest of the world, says PS

Must Read

Naivas makes Sh. 6 billion after selling stake to World Bank’s IFC

Naivas Supermarket has entrenched its position as the leading local retailer in Kenya. This follows the successful sale of...

How the Awori family raised nearly Sh. 1 billion for jailed grandma

On Monday, it was revealed that the larger Awori family had raised some Sh. 800 million to bail out...

Kenyan businesses that are making billions despite corona

Top Kenyan Businesses: Nearly five months have passed since Kenya confirmed her first case of the coronavirus disease dubbed...

Price of Fuel in Kenya: On April 20, US oil prices turned negative for the first time ever as the great oil crash of 2020 took a bizarre turn. Crude finished at -$37.63 a barrel, marking the only time it has gone below zero since oil futures began trading on NYMEX in 1983. The historic collapse showed just how terribly oversupplied the oil market has become. There are real fears that the world will soon run out of places to store barrels. The oil prices in the middle east have been falling too, even though they are yet to go negative.

These falls have raised hopes that Kenyans may soon start to enjoy low prices at the pump. But this dream has now been burst. Kenyans should not expect to enjoy the low fuel prices that the rest of the world has been enjoying.

Alex Munyi: How I came to own 23 matatus, Sh. 10 million wealth

According to a report that appeared in a local daily that quoted the Permanent Secretary for Petroleum and Energy Andrew Kamau, the fall in prices have nothing to do with the way oil is imported and priced in Kenya. “The WTI is a US pricing mechanism and is based on oil speculations. It has nothing specific to do with how we import and price for oil here. If you check the Platts, you get the real price from dealers who handle the physical oil,” PS Kamau told the Business Daily.

He further explained that Kenya uses Platts quote for kerosene while Gasoil Arab Gulf and Singapore Platts are used for petrol in determining imports through the Open Tender System (OTS) run by the Petroleum Department.

“Under the OTS, however, Kenya has a one-month lag in the importation of fuel, which means the May 14 fuel prices will be determined by the March and April crude prices hence there is no immediate relationship with what happens in the international markets,” the report in the Business Daily further said on the price of fuel in Kenya.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Latest News

Covid-19 hitting Kenya’s small businesses hard, says Facebook report

More than a third of small businesses on Facebook in Kenya have been forced to shut down as a...

Awori family raises Sh. 800 million to bail out jailed Grace Wakhungu

The Awori family has raised a whopping Sh. 800 million to bail out 79-year-old Grace Wakhungu who is in jail. The family went on...

Prof Hamo gets huge salary in Hot 96, Milele FM public fight

The exit of popular comedian Jalang'o from Milele FM was without doubt bound to create a vacuum. And in filling this vacuum, the MediaMax...

Ann Gachugu: I left my banking job in Australia to farm in Kenya

“I had a banking in Australia before I quit my job to return home to become a mushroom farmer. After high school, I moved...

UK billionaires partner with Kenyan firm to start new sports betting site

Triple5bet: Kenya’s sports’ betting is headed for interesting times following the entry of a new company with backing from billionaire British investors. Triple5bet, which will...

More Articles Like This