As mentioned in my previous post, IMHO is blowing hot air regarding petrol prices. Finally, an Oil Marketer (Kenol/Kobil) has come out fighting the bullying government, putting the record straight while exposing us to the morass that is tax collection.
The Oil Marketers are arguing that since the government's taxes & levies constitute an increasing percentage (40% at the minimum) of the price of Petrol, the government should reduce its profligate ways.
The link below shows 70% of EABL's revenues go to the government in the form of taxes & levies. The government makes 3.3x what the shareholders get!
Essentially, for 100/- EABL gets from the sale of beer, the goverment gets 70/- without doing much! Not 70% of profits but 70% of REVENUES.... What a scam!
EABL's "distribution" graphic go to Page 29
Oil Marketers are in the same boat. Examples:
Refining crude at the Mombasa refinery is mandatory and oil firms must refine at least 70 per cent of their requirements at the facility, under the Baseoad Rule.Kinyua (Kenol-Kobil), however, pointed that two months ago, Kenya Petroleum Refineries Ltd increased its basic refining fee for crude oil processing from $1.75 to $2.15 per barrel, an increase of 22 per cent.
Kimunya (govt stooge) never mentions that the inefficient KPRL gets more for doing less while we (taxpayers) end up footing the bill.
How & why is KPRL allowed to charge more for refining?
Isn't this a subsidy for an inefficient refiner?
Why should taxpayers have to pay for it?
Who owns KPRL?
Isn't this monopolistic behaviour?
He said the adjustment followed an earlier increase last year by Kenya Pipeline Company (KPC) for its charges at the Kipevu Oil Storage Facility from $2 to $3 per cubic metre.
A subsidy for a government owned entity that is mired in scandal. The KACC wants to confiscate the MD's passport.
They now "own" a KES 1 Billion building instead of investing in upgrading the pipeline! Wrong priorities!
The road leading to the Fuel Depot in Nairobi is pathetic (& leads to dangerous situations) but they spend KES 1 Billion on an office building!
BTW, isn't this monopolistic behaviour?
What remedies do we have to reduce the costs inmposed on us as consumers?
Collection of taxes upfront since August last year and delayed tax refunds, he pointed out, had increased the cost of doing business.
So Oil Marketers (via the consumers) further subsidise the government! No wonder the government collection targets are so rosy since they do not refund the money!
Why should consumers have to pay for the excesses (bonuses, perks, outsized salaries, cars of the MPs & ministers?
Why do ministers who STEAL by overinflating their mileage allowances get to go scot-free?
If I file my taxes late, I am penalised but is it OK if the government REFUSES to refund my money?