Ruto - subsidies gone

[RV Pundit]

If ncpb is given money there is maize ready from farm now's...then millers will have no excuse.Gov should resume strategic maize purchase that idiot munya discountined thinking he was punishing kalenjin...kumbe he was punishing Kenyans.Open ncpb stores and in a few weeks millers will have enough cheap maize

[hk]

Small connected players win the contract to import oil every three months on behalf of the entire industry.
Remember triton.
We need to either allow individual oil companies to import their oil from wherever
Or national oil/kenya pipeline - should import - and sell to all.

Right now - gov float tender every 3 months - and lowest cost importer (small shadow firms) then get financed by banks with oil held by KPL as collateral.
.

Can someone tell me why we still get ool from KSA ? and Re-exported oil from China Where as the Cheapest oil now is from Russia.
Who own these companies with monopoly in oil import and how is the subsidies paid or awarded.
Is Ruto planning to liberize the oil market in Kenya.
When it comes to government matters Ruto usually doesnt expose inside dealings . When you see him doing something its well calculated and thought out.
Even when Raila, Uhuru, IEBC and NSAC were trying to steal the elections he handled in a manner that it backfired for Azimio.
Imagine if this was Raila and Azimio politicians they could have plunged the nation in something we would be regretting now.
Unga Subsidy was away of availaing funds for Azimio campaigns.
We now need to know the real players in the Kenyan oil market.

Kiraitu screwed up the industry when he was minister for energy, created ERA that put  price controls. The industry should be full liberalized the country shouldnt have monthly supply tenders. Even without a coin if a company wins the tender all they have to do is to walk to the nearest bank and they are financed.
NCPB should be relegated to warehousing with receipting system, government has no business buying maize from farmers.

[RV Pundit]

Strategic maize reserve is needed.. this should be kept for days like now.Strategic fuel reserves too

[hk]

Strategic maize reserve is needed.. this should be kept for days like now.Strategic fuel reserves too

Strategic reserve is ok for all critically essential commodities but government shouldn't be in the commodity business.
Meanwhile fuel increased by ksh.20 and starting october kra inflation adjustment on excise duty will be raised. So much for lowering cost of living.

[RV Pundit]

You don't expect miracles in day two..Ruto has five years..he is fixing things in fundamental way... bleeding has to stop..ufool has messed up the country so much Gachagua says treasury is broke.Ruto promised to fix the mess in two or three years then economy will boom like never before.Ufool damage is extensive and they will pay for it

[RV Pundit]

The energy sector needs serious reforms..ufool Rubis connection need investigation to ensure this not criminal state capture and conflict of interest..Ruto should refuse to pay those subsidies.. empower small independent petrol station by using national oil..let national oil import fuel for the country..and independent petrol station are affiliated to it.National oil was formed in 1982 oil crisis by moi to fix a similar mess.Now it time to capitalize it and unleash it potential..Rubis can go drying

[audacityofhope]

You don't expect miracles in day two..Ruto has five years..he is fixing things in fundamental way... bleeding has to stop..ufool has messed up the country so much Gachagua says treasury is broke.Ruto promised to fix the mess in two or three years then economy will boom like never before.Ufool damage is extensive and they will pay for it

This is what Gachagua said...

Yes we do. pic.twitter.com/zQjSfjYeto

— IamKAMI (@is_capone) September 15, 2022

?s=20&t=7DgP0QuWwF1F7P0BFZo_4Q

[RV Pundit]

Azimio left Ruto with empty coffers. Ndii is busy at work.

Friends, supporters, well wishers. Please please give us a chance to settle down. If we don’t pick or return your calls, we are working.

— David Ndii (@DavidNdii) September 15, 2022

Moses Kuria is speaking the painful truth. Kenyans, open your eyes! https://t.co/bHlFz0krpn

— David Makali (@davidmakali1) September 15, 2022

[RV Pundit]

[RV Pundit]

The solution is to go back to crisis of 1972 and 1982 - oil crisis - and continue where we left.

The answer is NOCK with KPL - can fix the oil oligopolies - and allow independent petrol stations to thrive.

The National Oil Corporation of Kenya (NOCK), is a state corporation of Kenya founded by Act of Parliament in 1981, with a mandate of participating in all aspects of the Kenyan petroleum industry.[2] The company was incorporated in 1981[2] and began operations in 1984.[3]

[RV Pundit]

 
COPIED
..
The Fuel Prices Riddle..The question is to reign on the Multinationals hold on the Kenyan Fuel industry
Subsidies are not the answer but STRUCTURED management of the Industry is.
1) Remove the Subsidies,work on the Variables on the Pricing/Costing formuls and  on the  TAX indices
2.Enhance the Ministry ot Petroleum/Energy/Mining Capacity to align the relevant Parastatals under its watch and harvest the accruing synergies.
-The National Oil Corporation of Kenya(NOCK)
-The Kenya Pipeline Corporation (KPC) on Logistics and distribution and by extension storage
-The Dormant Kenya Petroleum Refineries ltd(KPRL) on refining..upgrade it and harvest the synergies from the new Kipevu Oil Terminal(KOT) and the Kenya Oil Storage Facility(KOSF)..If proven not viable,work on the proposed  Lamu Merchant Refinery in Lamu through the LAPSSET corridor.
These parastatals need ro be brought together and be made to work in unison and not in competition with each other and then finally the Energy Petroleum & Regulatory Authority(EPRA) should be on its REGULATORY role but under NOCK..but principality,the Country needs a ROBUST FUELS/PETROLEUM RRSERVOIR POLICY..that would invest in the development of its Storage facilities and assets, say,a reservoir Policy that can cover the Country's requirements snd demands for at least 6-12 Month period as opposed to the now online-use(Ship to Pump) kind of Imports and storage,which is prone to immediate global price movements.
The Country is mature in its Oil & Gas Industry and we should reduce the over-reliance on the Oil & Gas Multinationals that are more on the downstream(Retail & Marketing),like in Nigeria, the Multinationals should be licensed to be on the Upstream only and leave the downstream aspects of the Induatry to the Kenyan Oil Marketing companies .Less roles should be left/given to the current Oil & Gas Multinationals of :-
Shell/Vivo
Total Energies
Lexo
Oil Libya Africa(OLA)
Rubis  et al in the downstream but more support given to the mid-tier Kenyan Oil Marketing Companies (OMCs) like:-
Hash
Hass
Astrol
Delta
One Petroleum et al
NOCK should be given the chance to actualise its mandate ..one of them being in control of the monthly Open Tender System(OTS) and the strategic capacity to import at lesst 1/3 of the Country's demands.
Control the monthly Open Tender System(OTS) under NOCK
Increase the storage capacity of the Kipevu Oil Storage Facility(KOSF) to buffer Price hikes as we develop the FUELS STORAGE RESERVOIR policy..we need strategic reserves that can cushion the Country.
 LASTLY...Lets work on the Oil & Gas infrastructure  development ..starting from :
1) The Tullow Oil fields,the Proposed Lamu/Lapsset Merchant Oil Refinery in Lamu ..manage the Transfer of the same assets to the Indian consortium.
2) The proposed KPRL upgrade and activation of the new  Kipevu Oil Terminal(KOT) at the Kenya Ports Authority(KPA) in Mombasa.
3) The Kenya Pipeline Corporation(KPC)  logistics upgrade and distribution Mandate.As a midstream Parastatal ,KPC has a role in reducing the pricing and costing of fuel products in the Country. Strategic depots development shall assist..these depots in.
Mombasa
Nairobi
Nakuru
Eldoret
Kisumu and
Sagana..reduce the price of logistics/Storage /transport in those areas and it would have an input in the last price.
4)The development of common-user depots/loading facilities shall also go along way in reducing the price of petroleum products 
There is more that can be done on the Petroleum products costing and pricing but MUCH can be harvested within by relooking at the entire chain backwards and go for the low handing fruits that can be managed now and the benefit spread out in the Market and cushion the People.There is alot of waste/cost duplication that can be REWORKED on but majorly the TAXES .
Regards
Eng Dzombo Mbaru
CEO-Mardin Energy Ltd
15th September 2022

[RV Pundit]

I would also initiate talks with Tullow to do modular refineries in the oil wells. Kenya need about 200K barrels per day.

10 modular refineries in 10 wells in Turkana can process 30K each...more than enough.

Also time to open talks with Museveni on their oil refinery

[RV Pundit]

PWC named it "Bottom up Refining revolution". It happening in Nigeria.

One modular refinery of 30K barrels require less than 200M dollars - about 20B kshs - kenya to build 10 - require just 2B - money - and payback period is very short.

I say float a bond - buy off Tullow - National Oil to own it - build module refineries - total 3B - dollars - and have KPL extended the line from Eldoret to Turkana South - mere 200Kms.

https://www.pwc.com/ng/en/assets/pdf/the-bottom-up-refining-revolution-part4.pdf

[hk]

Subsidies mean that instead of market price the subsidy pays for part of the price. The ksh. 20 increment would have been paid by government. So the biggest companies obviously got the bulk of the cash. Independent retailers without storage obviously suffered, I think that was a major problem. I'd imagine subsidy was paid upfront before distribution.

[RV Pundit]

[gout]

Less consumption by my cars means less dollar imports. Less congestion too. Watu wapande matatu.

[Georgesoros]

Ruto's directives Subsidies, The price of fuel will rise increasing the already high inflation. While removing subsidies is good it should be followed up with reduction of taxes on fuel. But government needs money to fund the huge budget, plus IMF conditions for loans would be breached.  Subsidizing fertilizer (production) without a solution to bring down cost of fertilizers means the public will only continue to pay for inefficient farmers.  This isn't a longterm solution.
Hustler fund and housing scheme.  Kenyans are already accessing unsecured loans from banks, mobile loans etc, the question is the cost(interest rates). The prudent thing would be to lower interest rates but that means fiscal responsibility. Besides why would taxpayers shoulder the risk of lending without collateral instead of private sector? Low cost housing scheme to provide jobs is just like kazi mtaani . The solution would be to address land and cost of building especially materials. To finance this we need to securitize mortgages and debt in general so that pensions, investors  etc can invest in the sector instead of treasury bonds.   

I understand that subsidies had to go but they should have been phased out. There is going to be significant inflation near term.
This is the kind of hasty decisions some of us talk about. Its trying to kill beneficiaries of the subsidy but end up destroying the economy.

[RV Pundit]

There is a lot of scope to reduce petrol price...parliament need to get down once Ndii is finished doing the maths. These levies are based on projection of low oil prices...so this extra money KRA is making...we dont need it.

Subsides are bound to be abused - but taxes everone will benefit. The budget should be made based on target petrol price...so kra knows it will collect 40% of 100shs...meaning 40shs per litre..out 6B litres...Kra will always expect 240B kshs from oil sector...if global oil prices goes higher.. all extra taxes should be reduced so that KRA always takes 40shs...meaning instead of rising to 170 now...with KRA collecting 80shs per litre..that extra 40shs....is what should be reduced at pump prices. So we need to move away from % to static constant figure that KRA will collect every year from oil as per approved budget. Next budget - kra should be given a figure to collect from every liter of oil..40shs per litre...whether oil go high or low...next year they can do 45shs...etc

About 40 per cent of the retail price of petrol is consumed by taxes and levies such as excise, value-added tax (VAT), import declarations fee, road maintenance, petroleum development, petroleum regulatory, railway development, anti-adulteration, and merchant shipping levies.16 Jun 2022

[RV Pundit]

Fuel costs across Eastern Africa pic.twitter.com/sgoUBDFU96

— Citizen TV Kenya (@citizentvkenya) September 15, 2022

[gout]

Chinku is buying Russian fuel at half price.

https://www.businessinsider.in/stock-market/news/china-has-secured-russian-gas-at-a-50-discount-until-the-end-of-this-year/articleshow/94080030.cms