cover image: PETROLEUM PUMP PRICING FRAMEWORK IN KENYA - PRESENTATION TO THE INSTUTE OF ECONOMIC AFFAIRS 6

20.500.12592/d5jz9t

PETROLEUM PUMP PRICING FRAMEWORK IN KENYA - PRESENTATION TO THE INSTUTE OF ECONOMIC AFFAIRS 6

6 May 2021

q The functions of the Authority are outlined in Section 10 of the Energy Act 2019 and include: • Regulate; generation, importation, exportation, transmission, distribution, supply and use of electrical energy with the exception of licensing of nuclear facilities; • Regulate; monitor and supervise upstream petroleum operations; • Collect, maintain and manage upstream petroleum data; 1.0 ESTABLISHM. [...] 26 of 2012 qLegal Notice #196 of 2010 comprises a petroleum pricing formula that caps prices for Super Petrol, Diesel and Dual Purpose Kerosene qFormula mirrors the petroleum value chain from importation, refining, storage, transportation through to retailing qEPRA has oversight for efficiency standards and the monopoly or near-monopoly functions: storage, transportation 2.1 PETROLEUM VALUE CHAIN. [...] qPricing Basis for Free on Board Cost for the import is based on Mean of Platts 2.3 THE PRICING FORMULA qCost Plus formula that lumps additional costs along the supply chain to the landed cost qThe Landed Cost is a weighted average cost of all imported cargoes for each grade: ∑(? ? ? ? ∗ ? ? ? ? ? ) ? = ∑ ? ? ? ? q Landed Cost per cargo: Cl = {{{FOB + FP + LC} * {FX}}/CF} + { IWR + KPA + SC +. [...] Margins Demurrage Distribution Costs Landed Cost Cost of Components Kshs/litre 2.6 DIESEL PUMP PRICE PROGRESSION 130 120 110 100 90 80 70 60 50 40 30 20 10 0 r-1 9 r-1 9 -19 9 9 9 9 9y n-1 l-1 g-1 p- 1 t-1 v-1 9 -19 -20 -20 -20 -20 -20 -20 -20 -20 -20 -20c n b r r y n l g p t v-2 0 -20 -21 -21 -21 -21a M Ap aM Ju J u Au Se O c o De Ja c n b r r Fe a cAp a Ju Ju u Se O o De Ja Fe a Ap Taxes and Lev. [...] N Margins M DemurragMe DiAstribution Costs N Landed CoMst Cost of Components Kshs/litre 2.7 KEROSENE PUMP PRICE PROGRESSION 120 100 80 60 40 20 0 -19 -19 9r r y-1 -1 9 l-1 9 n g-1 9 p-1 9 9 9 9 0 0 0 t-1 v-1 c-1 n-2 b-2 r-2 r-2 0 -20 0 20 0a u c a y n- 2 2 ul- g- p- 20 -20 -20 -20ct v c - 21 -21 -21 -21 M Ap Ma Ju J Au Se O No D e Ja Fe M Ap Ma Ju J Au Se O e No D Ja n eb arF M Ap r Taxes and Levi.
Pages
13
Published in
Kenya