WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2010-04-19 Time: 13:00:18 Posted By: News Poster
By Kennedy Senelwa
Nairobi – Global crude oil and refined fuel price rally threatens to reverse Kenya’s economic growth prospects by triggering renewed inflation with retail petroleum products cost rising.
The country has projected a 4.9 per cent growth by June 2011 but rising retail pump prices will increase the cost of manufacturing goods and providing services as global crude oil and refined fuel escalate. In Nairobi’s central business district, petrol is retailing at Sh94.9 per litre and diesel Sh80.80 after the latest adjustment.
This comes after crude oil prices rose to over $83 a barrel. Retail fuel prices in various places vary depending on level of competition in the surrounding area. According to Kenya Shell, fossil fuels cost escalation is being driven by rising demand occasioned by the recovery of American and European economies from the recent financial meltdown.
“Crude oil has risen to over $83 per barrel due to increasing demand in industrialised countries and prices could further go up soon,” said Shell’s communications manager Victoria Kaigai. Pump prices are adjusted up or down depending on changes in international crude oil cost, shilling-dollar exchange rate, taxation, cost of finance, transport inland and profit margins among others.
Economic activities in Kenya are picking up after being sluggish over two years due to the post-election violence and a rise in inflation will have a negative effect the entire economy. Hydrocarbons Management Consultants said fuel price escalation will push up the cost of transport with manufacturers and services providers among others passing the burden to consumers.
“Kenya is now consuming fuel processed by the refinery from Murban crude oil that was bought at $78.30 a barrel. Prices are based on average for the previous month,” said lead consultant Robert Shisoka. He said Abu Dhabi National Oil Company retrospectively fixes Mubran crude oil prices at the beginning of the next month based on previous month’s average cost.
While the purchasing power of most Kenyans is falling, more money will be used on importing crude and refined fuel depending on continued price rise in the international market. This will weaken the Kenyan shilling against the dollar which is the main currency used for importation. Kenya is a net fossil fuels importer as the country has not discovered commercial crude oil deposits.
Metro Petroleum said Kenyans should expect an increase of between Sh4 to Sh5 in the near future.
Adjusting costs
Managing director Bill Rotich said in adjusting prices, marketers consider cost of imported refined fuel as Kenya Petroleum Refineries Ltd meets 50 per cent of local requirements. “A rise of $1 for crude oil translates to an increase of Sh1 per litre at retail level. It is anticipated crude oil prices will average between $93 to $98 from August this year,” he said.
The price of crude oil reached an all-time high of $147 a barrel in July 2008 before the global financial crisis led to prices going down to $32 in December the same year before regaining upwards.
Original Source: 
Original date published: 17 April 2010
Source: http://allafrica.com/stories/201004190557.html?viewall=1