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: 2010-09-21 Time: 14:00:04 Posted By: News Poster
By Cedric Lumiti and Joseph Olanyo
Nairobi – Kenya last week experienced a biting fuel shortage following a dispute between market leader KenolKobil and the industry regulator, the Energy Regulatory Commission (ERC).
Most filling stations in the country credited as the region’s economic hub admitted that their pumps had run dry even as manufacturers called on the government to find a quick solution. The few pump stations with the precious commodity registered long queues as motorists rushed to fill their tanks for fear of a complete shortage.
According to industry players, the shortage has been occasioned by the withdrawal of KenolKobil’s crude import licence by the Kenyan government early this month. The company commands a massive 25% local market share.
The oil market, however, played down the dispute claiming that the company had put in place measures to ensure the market was not affected. The company Corporate Affairs Manager, Mr. Charles Njogu, said despite the dispute the company had measures in place to ensure all its outlets were running normally.
Early this month, the government through regulator ERC withdrew KenolKobil’s import license for crude and refined petroleum following the expiry of a three week ultimatum the regulators gave the company to resolve a dispute between them and the Kenya Petroleum Refinery. “We have not experienced any shortages at our outlets as we are still running at full capacity. I would attribute any shortage to a mere logistical hitch,” said Njogu in Nairobi last week.
He said the company had alternative sources of oil even as it goes about solving the dispute with the industry regulator.
Some players said the genesis of the current crisis was a between KenolKobil and ERC and the refinery over a $2 million out of a revised Bill of Landing due to a ship-to-ship operation, which KenolKobil claims violates the industry Open Tender System (OTS).
The company is laying blame on the government for poor management of oil storage and distribution adding that the company has nothing to do with the shortage. The oil marketer has since been sourcing its oil from independent oil suppliers in the region. Analysts fear that a firm with such market share having to source from other marketers could further drive pump prices through the ceiling.
Already Kenyan motorists have had to contend with a $0.05 increment passed onto them as a result of the shortage. The situation in Kenya is prevailing despite prices in the international crude oil market remaining stable at between $74 and $80 a barrel in recent months having dropped from $85 early this year.
The Kenyan oil industry has been fragile over the years with pump operators ready to hike prices at the slightest provocation. Then current situation is likely to push up inflation levels in the country which had dropped significantly following a huge reduction in mobile communication charges owing to ongoing industry price wars between the four operators.
KAMPALA, UGANDA – Rocketing fuel prices are pushing Ugandan motorists to the roadsides a phenomonon that could push up commodity prices and transport fares.
In a spate of two week, pump prices have shot up from initial Shs2,850 ($1.25) to Shs3,200 ($1.50) for petrol, Shs2,300 to, Shs2450 for diesel and from Shs1,850 to 2,020 for Kerosene respectively. In most fuel stations, the price bars are full of zeros indicating that there is no fuel, while others post high prices
The crisis, which began a fortnight ago, has given advantage to fuel companies to increase pump prices in the name of scarcity. While there are no available figures, Uganda is now known for having the highest fuel prices in the region. While Uganda’s Information and National Guidance Minister, Kabakumba Matsiko, attributes the crisis to the piracy threats in the ocean waters, other people think that the situation is beyond just piracy, but a combination of factors.
“The main cause is due to the delay in arrival of the product at Mombasa port. Arising from increased piracy on the Indian Ocean,, the ships use longer routes, deploy additional security and pay more insurance cover,” Kabakumba said during a press conference at Uganda Media Centre. But Shell Uganda Chairman Mr Ivan Kyayonka, contends that the factors that have pushed fuel prices are international oil prices, exchange rate and cost of logistics.
“Because of very many issues in the East African region, the demand for fuel in the region has outstripped its infrastructure. The ports are running behind schedule. I have had a ship at Mombasa port for two months. It can’t off load because some jetties at the port have been closed for renovation,” Kyayonka said.
“Scarcity is principally a problem of logistics. We would ordinarily like to move fuel by pipeline, but we are forced to move it with trucks where we have to pay more.” Industry analysts , however, believe Uganda is partly a victim of the Kenya oil row where the regulator has closed operations of KenolKobil, which controls 25% market share in Kenya.
Naturally, there is atendency for Kenyan suppliers to fill their market and then pass on whatever remains to Uganda and other countries. The assistant Commissioner Petroleum Supply, Ministry of Energy and Mineral Development, Rev Justaf Frank Tukwasibwe, said fuel trucks were in transit to Kampala city. He did not state when they would arrive.
“We consume about one million litres of petrol daily, but only about 600,000 liters have been coming leaving us with a shortage of 400,000 litres,’ Tukwasibwe said. The increase in fuel has given Ugandan motorists a hard time and they struggle to cope with the situation.
It is now a common sight to see a vehicle parked, sometimes in the middle or road side with double indicators as one dashes with a five litre jerrican to get fuel at a nearby station. Motorcyclists, popularly known as boda bodas are now doing brisk business as that is the immediate means of transportation to look for fuel.
Motorists are also crying foul as some boda bodas exploit them by buying fuel that is less than the money there are given. But Uganda, a landlocked country that depends on the Northern Corridor route of Mombasa port, is not new to catastrophes such as fuel shortage.
At one time, during the post election violence in Kenya that sparked unprecedented violent riots that led to the loss of some 1,000 lives, fuel prices in Uganda, went over the roof, reaching a record high of Shs10,000 ($5) per litre. Since Government liberalised the sector in 1994, demand and supply of fuel has been left in the hands of private oil companies, where market forces rule.
As a result fuel companies operating in the country have taken advantage of each every single scenario to reap big gains to the detriment of consumers who have no other options but to reel with the skyrocketing fuel prices. Stakeholders contend that over dependency on the Northern Corridor route of Mombasa port, is one of the factors contributing to the fuel crisis.
Improved structure on the Southern Corridor route of Dar es Salaam Port could bail out the landlocked country. But with the Uganda shilling depreciating against the US dollar, it is unlikely that Ugandans will stop driving on the roadsides.
Original date published: 20 September 2010
Source: http://allafrica.com/stories/201009210850.html?viewall=1