Post by rwath on Sept 17, 2005 7:03:37 GMT 3
Prepare for price hikes, oil firm warns
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By Noel Wandera
Kenyans should prepare for further increments in fuel prices, an oil industry executive warned yesterday.
Mr Jacob Segman, the Managing Director of Kenol/Kobil, said pump price escalation was likely to continue into the new year.
"Indications are that the upward trend will continue in the medium term," he said.
Yesterday, Kenol/Kobil was selling a litre of unleaded premium petrol for Sh76.99.
Segman said the increments were partly due to high freight charges and an increase in demand.
"Despite the huge rise in demand, there has been no oil sector development in the US for the past 30 years," said Segman.
He said China and India had also contributed to high prices due to increase demand.
The market has also been characterized by volatility, disruptions, speculation and limited spare capacity, he said.
Segman was speaking at the Hurlinghsam Kenol/Kobil petrol station in Nairobi where the winners of a ruffle the company has been running for the past two months were picked.
The marketing drive was partly sponsored by Marshall East Africa, which donated the grand price, a Peugeot 206.
Segman said the oil industry had resolved the problems that characterised introduction of a new system of paying tax on imported oil products.
He expressed hope the new system would curb dumping of oil imports in Western Kenya and under-declaration of duty.
Segman said control of such illegal activities would only be possible if the Government enforced the single entry point rule that requires all imports to pass through Kenya Pipeline Company.
He said his firm was determined to ensure that the Mombasa refinery was upgraded to enable it produce lead free fuels.
The refinery is considering use of a manganese-based octane enhancer as an alternative to tetra ethyl lead to beat the January 2006 deadline for the changeover to lead free gasoline.
"Kenol/Kobil’s position is that MMT has negative effects and is in fact banned in countries such as the USA. We will not support its introduction here," he said.
-------------------------------------------------------------
By Noel Wandera
Kenyans should prepare for further increments in fuel prices, an oil industry executive warned yesterday.
Mr Jacob Segman, the Managing Director of Kenol/Kobil, said pump price escalation was likely to continue into the new year.
"Indications are that the upward trend will continue in the medium term," he said.
Yesterday, Kenol/Kobil was selling a litre of unleaded premium petrol for Sh76.99.
Segman said the increments were partly due to high freight charges and an increase in demand.
"Despite the huge rise in demand, there has been no oil sector development in the US for the past 30 years," said Segman.
He said China and India had also contributed to high prices due to increase demand.
The market has also been characterized by volatility, disruptions, speculation and limited spare capacity, he said.
Segman was speaking at the Hurlinghsam Kenol/Kobil petrol station in Nairobi where the winners of a ruffle the company has been running for the past two months were picked.
The marketing drive was partly sponsored by Marshall East Africa, which donated the grand price, a Peugeot 206.
Segman said the oil industry had resolved the problems that characterised introduction of a new system of paying tax on imported oil products.
He expressed hope the new system would curb dumping of oil imports in Western Kenya and under-declaration of duty.
Segman said control of such illegal activities would only be possible if the Government enforced the single entry point rule that requires all imports to pass through Kenya Pipeline Company.
He said his firm was determined to ensure that the Mombasa refinery was upgraded to enable it produce lead free fuels.
The refinery is considering use of a manganese-based octane enhancer as an alternative to tetra ethyl lead to beat the January 2006 deadline for the changeover to lead free gasoline.
"Kenol/Kobil’s position is that MMT has negative effects and is in fact banned in countries such as the USA. We will not support its introduction here," he said.