Use our pull-down menus to find more stories
  


OR subscribers use AllAfrica's premium search engine


Click here to read or make comments on this topic »

Kenya: High Refinery Costs to Raise Petrol Prices


The Nation (Nairobi)
 

Email This Page

Print This Page

Comment on this article

The Nation (Nairobi)

9 May 2008
Posted to the web 9 May 2008

Nairobi

Kenyans should start preparing to pay more for petroleum products before the end of the year.

This is because the local cost of refining a barrel of crude oil will have risen by then.

Kenya Petroleum Refineries Ltd plans to hike the processing fee of crude oil by nine per cent from October 1 due to increased operating costs and a significant reduction in revenues.

High inflation

KPRL's general manager, Mr John Mruttu, said the processing fee of a barrel (159 litres) of crude oil at the Mombasa-based plant will increase by nine per cent from US$2.15 to US$2.35.

"Basic processing fee was last increased in September 2006 and inflation since then has increased by more than 11 per cent," he said in letter dated March 31 and sent to marketing companies.

The refinery's management issued a six months notice of increase of fees in accordance to an agreement signed with firms that process crude oil locally.

Operating costs

Relevant Links

Mr Mruttu said KPRL's operating costs had increased and revenues had declined significantly as processing fees paid in Kenya shillings had gained considerable strength against the dollar since the last review.

In 2006 when the last increase was effected, the exchange rate was Sh72 to the dollar while in March this year, this had reduced to Sh62, which KPRL's says translates to 14 per cent appreciation of shilling.

The management argues the processing fee oil marketing companies are charged, has to go up to enable Kenya Petroleum Refineries Ltd maintain a viable operation.



AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

 
Share this on:
Facebook
Digg
Del.icio.us
StumbleUpon
Muti


Copyright © 2008 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here.

Make allAfrica.com your home page | RSS Feed

Top | Site Guide | Who We Are | Advertising | Search | Subscribe

Questions or Comments? Contact us. Read our Privacy Statement.

HOME
allAfrica.com


Relevant Links




Mystery Surrounds Country Settling $700 Million Debt
Private Investment Not Enough for Green Revolution
Government Bans Rice Exports
EPZ Firms Lack Competitive Edge
Export Controls Curtail Aid for Hungry Neighbours