Oil dealers get Sh1bn for frozen fuel prices
Tuesday May 25 2021
By JOHN MUTUA
Summary
Oil marketers got Sh1.075 billion from the Treasury as compensation for keeping fuel prices unchanged and defuse public outrage.
The Treasury gave the marketers about Sh880 million after the energy regulator opted to cut suppliers’ sales margin by up to 35 percent or Sh4.44 a litre to keep fuel prices unchanged.
Oil marketers got Sh1.075 billion from the Treasury as compensation for keeping fuel prices unchanged and defuse public outrage over a monthly review that would have pushed costs to a historic high.
The Treasury gave the marketers about Sh880 million after the energy regulator opted to cut suppliers’ sales margin by up to 35 percent or Sh4.44 a litre to keep fuel prices unchanged in the month to May 14.
The East African
Monday May 10 2021
A vessel offloads fuel at Kipevu Oil terminus within the port of Mombasa. Importation of super petrol, diesel and kerosene into Kenya is undertaken through the Open Tender System. PHOTO | NMG
Summary
Under the agreed plan, the oil marketers will be compensated based on the value of cargo volumes factored in the pricing formula for the April-May pump prices computation, with the refund rate being equivalent to the margin reduction per litre per product for pump prices in Nairobi for the period April 15 to May 14.
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Kenya’s Ministry of Petroleum and Mining has agreed on a plan to compensate disgruntled oil marketing companies (OMCs) for the lower profit margins they made in April by not increasing pump prices.
Surge in LPG import causes huge financial drain of state firms
National
May 3, 2021
ISLAMABAD: The unprecedented increase in inflow of subsidized imported LPG through the port and Taftan border has inflicted huge losses to the national exchequer as the state-owned LPG producing companies are compelled to sell their produce at prices lower than those notified by OGRA to remain competitive.
This unfolded in two letters that OGRA wrote in a row to secretary petroleum Mian Asad Hayaud Din. The letters of January 29, 2021 and April 30, 2021 highlighted the disparity between LPG importers and local producers mentioning that the reduction of Petroleum Development Levy (PDL) and GST on the imported LPG has resulted into massive inflow of poor quality imported LPG through the port and Taftan border.