From: Risper Akinyi
To: bidiiafrika@googlegroups.com
Sent: Thursday, November 20, 2008 1:58:39 PM
Subject: Re: Oil Prices

Wanabidii,

Is there a way this forum can inform the politicians who have also made themselves technocrats that we need to have lower prices of enery such as electric power, ptroleum fuels and basic needs like food items.

The prices of petroluem in the world markets have dropped sunstatially with today recording oil at US$ 53 A BARREL but look at our pump prices! they have remained at Ksh 98 and 96 in most petrol stations.

Please sombody tell the concerned Kiraitu and Bro Michiki about this.

Pete

– – – – – – – – – – –

Oil prices were at $49 per barrel as of yesterday. In percentage terms thats a of over 85% since 8weeks ago of $146 dollars per barrel. I feel pain my friends, every time i pass by a gas station displaying 93Ksh per liter when in fact the price should be well below 60ksh.

Why why why do we sit and take this?

– – –
Date: Thu, 20 Nov 2008 22:23:22 -0800 [11/21/2008 12:23:22 AM CST]
From: David Moseti
Subject: Re: Oil Prices

– – – – – – – – – – –

Good morning good people

Allow me to explain a little on why Oil Prices are still high.

Oil is one of commodities that is bought under the following trading jargon called Futures and
Forwards Contracts

I hope Kiraitu ,Energy Minister learned this before he made u-turn no offence to Him or Hon Michuki ok

Oil Companies purchase( read call) in many months ahead like 3 months to One year
Hence you need to have placed your order many months ago hence the price of today have little impact on what you bought at then.

Unless am wrong In Kenya, stock currently available could have been purchased in December last year 2008 at the then prevailing price maybe 100 dollars per barrel,
Hence the supply still coming in is pegged at that price until the order /stock supply is finished.

Another good mistake with future contracts is you cannot revoke the contract lest you are penalised via premuim pays.

This also apply to grains ,minerals like gold,copper diamonds etc

I will get lost if I continue speaking but will still discuss same as time allow

Thanks
Gibson Amenya
Global Young Greens

– – –
Date: Thu, 20 Nov 2008 23:15:54 -0800 [11/21/2008 01:15:54 AM CST]
From: amenya gibson
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

Amenya

This is pure nonsense. When the barrel price go up they never wait for 3 months. Why should we wait for sijui how many days. And let me tell you that this thing I blame on our government. The government tell you that they cannot force them to take the price down. Who is the government, the oil companies or wakina Michuki. The government has powers to call for state of emergency and even have a whole country curfew so what is just demanding or ordering the crooked oil companies to take the price down immediately?

The government is not serious on reducing food prices nor cost of living and doing business in this country. Kinyua is saying that Kenyans wants everything for free. That statement from finance PS hurt me more than anything else. I am with Ndung’u when he calls for citizen revolution in this country and non militant at that

/Alai

– – –
Date: Fri, 21 Nov 2008 10:33:39 +0300 [11/21/2008 01:33:39 AM CST]
From: Robert Alai
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

Not convinced. If so why do we not get price increases a year later but always weeks after historic price gains. Then when we ask why are told restocking costs. Its a scam on kenyans. Either sell us the stock you bought at the price you got it plus agreed percent or make it track the international price.

Any other system is price fixing.
– – –
Date: Fri, 21 Nov 2008 10:51:40 +0300 [11/21/2008 01:51:40 AM CST]
From: Kimutai Cherono
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

I agree with you sir, is there anyone who can forward these mails to our MPs?

Davic

– – –
Date: Fri, 21 Nov 2008 09:58:07 +0300 [11/21/2008 12:58:07 AM CST]
From: David Mugo
Subject: Re: Oil Prices

– – – – – – – – – – –

Most of our leaders are the owners of these companies you are crying foul about. They will make every attempt to squeeze out all the money from the common Mwananchi so that come elction time, they bribe you again with the money they wrongfully stolen from you. There is alot of ROT is our society now, and it (the rot) gets stinking everyday

– – –
Date: Thu, 20 Nov 2008 23:58:44 -0800 [11/21/2008 01:58:44 AM CST]
From: Rhoune Willis
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

G ibson youve got it a bit wrong…whereas its true oil is one of the commodities traded in the futures market this deliveries are never executed..The futures trade contrary to popular bellief is not meant for pple intending to buy a commodity but rather for traders looking to make a kill from the margins. The regulations stipulate that oil is bought at the prevailling spot price!

As for oil in Kenya the oil prices are affected by the following factors:

1. Govt taxes = 46ksh per litre (now almost 50% of pump price)
2.Cost of Crude
3. Cost of refining the crude at the Govt refinery
4.Cost of shipping
5.Cost of insurance which is unusually high as a result of piracy
6. Waiting cost…Ships can wait for weeks to dock at the Mombasa port due to the fact that our refinery can take only a ship at a time
7. Cost of Road transport
8. Oil company markup

For us to ask the oil companies to reduce the charges without considering the underlying factors is to be unreasonable…The culprit is not the oil industry but more the govt..If the govt was to give oil companies the liberty to ship in refined products the cost would come down considerably.

– – –
Date: Fri, 21 Nov 2008 11:03:07 +0300 [11/21/2008 02:03:07 AM CST]
From: john maina
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

Dear Wanabidii,

I read the concerns raised by all of you. When the pump price of oil was at Kes. 106, we rose up as NASCON and made the matter public with a raft of warnings to the oil companies that they risk serious action by the public if the oil pump prices wont be resuced so that it can be in tandem with the reduction from the global market. Gavin Bennet said that it remain a serious ambition but the price cant reduce beyond Kes. 8. Our demand was that the price reduces by Kes. 17. That is where we stand as at now. But this is not enough. A barrel of oil was at a low of $ 49 as correctly indicated in this forum as per yesterday evening. The PS Energy need to retrack his statement of saying that oil prices wont reduce further. They are the people who have let us down. The Energy Act empowers the Minister of Energy to act on oil companies who charge highly and there is some fine on that. Why are they not doing so?

I am writting an official letter to the Minister of Energy copy it to the Minister of Finance and also the Parliamentary Committee on Energy informing them of the cries from the public and i will report to this forum on the various responses if they will respond. I am at the same time crafting a statement that will be read sometime next week to the public in a press conference telling them to be ready for major decisions that we will come up with after consulting all key players, agencies and other institutions who are keen on this subject.

Regards

Geoffrey Somoni Birundu
National Coordinator Name and Shame Corruption Networks (NASCON) Campaign
C/O Centre for Law and Research International (CLARION)
P.o Box 46991 00100
Nairobi.

Tel: 387 16 14, 387 1857
Fax: 387 18 57
Email: birjef@yahoo.com
sbirundu@clarionkenya.org
Mobile: 254 724 85 27 28/0713 972 941
Physcal address: Kileleshwa off Vihiga road

– – –
Date: Fri, 21 Nov 2008 00:10:24 -0800 [11/21/2008 02:10:24 AM CST]
From: Somoni Birundu
Subject: Re: Oil Prices

– – – – – – – – – – –

I really don know much abt the futures and forward contracts but ma understanding is fuel at the depot level is relatively low n kinda of reflecting the fall of prices worldwide i guess its our retailers at the station that r greedy, it has nothing 2 do with the stocks.If at the depot level products hav fallen by abt sh 15 we expect 2 feel this at the gas station which is nt the case PMS going for around 82,AGO-78 and IK-55 at the depot tells much i stand 2 b corrected

– – –
Date: Fri, 21 Nov 2008 00:42:35 -0800 [11/21/2008 02:42:35 AM CST]
From: lucy nganga
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

— On Fri, 11/21/08, john maina wrote:

If the oil companies were soooo busy extorting the Kenyans as is being potrayed then why are the biggest oil companies bailing out of Kenya?

– – –
Date: Friday, November 21, 2008, 10:12 AM
From: john maina
Subject: Re: Oil Prices Why they will not drop first

– – – – – – – – – – –

Because their big returns and 80% margins may now be headed to 40% and with real oversight introduced. Lets cut the crap brother.

Geoffrey Somoni Birundu
National Coordinator Name and Shame Corruption Networks (NASCON) Campaign
C/O Centre for Law and Research International (CLARION)
P.o Box 46991 00100
Nairobi.

Tel: 387 16 14, 387 1857
Fax: 387 18 57
Email: birjef@yahoo.com
sbirundu@clarionkenya.org
Mobile: 254 724 85 27 28
Physcal address: Kileleshwa off Vihiga road

– – –
Date: Fri, 21 Nov 2008 02:43:59 -0800 [11/21/2008 04:43:59 AM CST]
From: Somoni Birundu
Subject: Re: Oil Prices Why they will not drop first