Blog Archive

Thursday, November 16, 2006

Update on the Oil Industry in Kenya

My original post & why fuel prices in Kenya can't drop further... and now this mess at the Refinery...

Sometimes, there are acts of nature but in this case the dilapidated 53 year old water system gave out!
This system was built in the Colonial days & at least it lasted as long as it did!

Don't expect the prices of fuel to reduce any time soon!


Kenyanomics said...

True, Kenyans must get used to high oil prices. But our "people loving" politicians passed a motion allowing the Minister of Energy to control oil prices. How absurd. Nobody talked of reducing taxes on petroleum products. I wonder how they will monitor prices all over the country.

It may sound a bit crazy, but I think the country is better off when MPs fail to attend parliament sessions. Imagine them making these kinds of policies daily.

mushenzi said...

Cold.. Can a broker allow me to open several nominee accounts e.g. 5, all belonging to me?

Odegle said...

i also fear this issue of controlling fuel prices but am sure it wont go through. its just a publicity thing for now.

coldi i somehow feel you havent sunk your teeth on th flesh and bones of eveready and KPLC as its characteristic of you. dont blame me. you got me used

coldtusker said...

kenyanomics - Even the US politicians wanted to tax "windfall profits" as a gimmick but these were oil producers.

In Kenya, we have Oil Marketers whose profits have actually dropped in 2006 since they can't pass the costs.

The bill could get passed & there will be jobs galore for the "regulators", more channels for bribes when the local petrol station owners are threatened & shortages when the oil marketers reduce imports in the face of low profits.

Yes, no talk of reducing TAXES...

coldtusker said...

Mushenzi - Ask your broker.

Odegle - Eveready's current shareholders not barred from selling shares immediately after the OFS. That does not give me a good feeling!

Nevertheless, its an new listing & Kenyans will go nuts!

KPLC - I haven't seen the Annual Report.

Kudrinketh said...

I dont have a good feeling about eveready and i guess i'm not alone.i have this feeling that everyone will be trying to dump the shares in the secondary because of better fish in the pond(Mumias,kenya re,telkom)

I think i'll sit this one out and see how it plays out in the secondary with funds on the ready to buy if need be.

coldtusker said...

That's the thing... If all folks are buying Eveready to dump afterwards... then who will buy?

BTW, the current shareholders might also join the "sellers" market IF the price rises!