Control is the name of the game
watch the oil prices
…. Iran and Arab Nations- Israeli Conflict will spike Oil prices to mad levels causing unrest worldwide just like the Oil Crisis during the Israel Arab Nations Yom Kippur war in the 70s.At that time the US Secretary of State Henry Kissinger,who controlled President Nixon, called for the Yom Kippur war and oil prices hike was also Saudi war on Israel.This 2011Saudi will fight Israel through oil prices as Secretary of State Clinton controls Obama’s International Policy by calling for military strike at Iran hence the world end s up blaming Israel and Jews for the economic woes and military wars that will bedevil the world.
It is interesting to note that just as the Western world is going through another oil price leap, the Kenyan Government quickly reined in the oil prices by setting price control.This order is VERY SIGNIFICANT. He who owns the energy owns everything ?? you could say.
By controlling oil prices, the government has declared that it is controlling all commodities.Instead of making laws of controlling every item own its own, why not control the price of the item that controls every item ?..oil.
Well, the Government had already put out a Price Control bill that was out to control the prices of essential commodities.However , the President vetoed the bill.Please note that the government really wanted to control prices because it means they can control profits of everyone, hence project and anaylze easily.
So the The Energy (Petroleum Pricing) Regulations 2010, signed by Energy minister Kiraitu Murungi was the key to control prices of all commodities because oil controls all items.Thus there is no need of price control on essential goods because the oil prices are now controlled by the State since the bill on essential goods was unpopular.
This Oil price control could have been done in anticipation and expectancy of the world increase of oil prices that is going to make life hard for the middle and lower classes as food prices and cots living will go up overnight.
Such a measure is not bad during an economic boom when people have a sustainable income.It is dangerous when it is done during a Global Economic Depression and Recession.
Connect this control with the Pope’s encyclical that addressed the economic crisis that is now a Global Depression.In his message the Pope categorically called for Price control.Price control for the very rich of the world means Losses Control for the rich controllers of the world and Profit control for the poor and working class.Hence the poor will suffer as always due to these so called price and oil price controls.
Besides the poor are duped in believing that when the State controls prices everything will be cheap .Let us do business math to destroy such a belief.
Petrol prices were at 76 Kenya shillings , let us say, three months ago . Oil crisis in Nigeria or some Middle East issue made the prices shoot up to 100 Kenya shillings.
People went on the street and rioted and the government ,in order to quell the unrest, ordered the oil companies to reduce their prices.The Oil companies refused to budge citing external influences affecting the oil prices.
The Government then steps in and orders the implementation of State controlled Oil prices.It puts the price at 90 Kenya shillings (4 shillings up but 10 shillings down ) and not at 86 shillings where it was in the first place.
Who ends up smiling to the bank ? THE OIL COMPANIES AND THE GOVERNMENT
Why ? The Oil crisis in Nigeria and Iran were planned events to create a profit by exaggerating the price of fuel to get a higher a price than the normal…Overshoot to shoot,Over Price to get Higher price.
So actually the price is from 76 to 90 Shillings, a 20 shilling profit in less than 3 months.If the State was out to help the poor , they would have demanded the companies to go back to the original price of 76 shillings BUT IT DID NOT DO THAT BECAUSE THEY WANT TO MAKE QUICK PROFITS FOR THEMSELVES AND THE COMPANIES.
Little price increases means a lot of Profit,therefore cause a little chaos to cause little unnoticeable rises that guarantee you a profit.That is what the elite do.
So despite all the raucous, the price increases in confusion.Hence more confusions are created raising the price higher and higher by overpricing then reducing to profitable margins.
Thus the State Price Control is a Socialist Measure with a Capitalist Result.This ultimately leads to Market Monopoly , the business of the Antichrist New World Order.
read on the issue from http://www.nation.co.ke/business/news/Independent%20petrol%20dealers%20hit%20by%20controls%20/-/1006/1082104/-/gvfawp/-/index.html
By JUSTUS ONDARI email@example.com and KENNEDY SENELWA firstname.lastname@example.orgPosted Monday, December 6 2010 http://www.nation.co.ke/business/news/Hope%20for%20motorists%20as%20ministry%20publishes%20rules%20on%20fuel%20pricing%20/-/1006/1067512/-/pde3lkz/-/index.html
* Government takes the first step in bid to tame rogue oil marketers as State-owned Nock lowers cost of diesel
Motorists and other consumers of petroleum products have received a big relief after the government published a price formula to be used by all industry players to determine their pump prices.
The Energy (Petroleum Pricing) Regulations 2010, contained in a special gazette notice signed by Energy minister Kiraitu Murungi and which will take effect on December 15, will see marketers making a profit of Sh6 at the wholesale level and Sh3 at retail level.
The pricing structure, which will see pump prices remaining unchanged for at least a month, ends an era of arbitrary price increases that oil marketers have enjoyed since 1994.
“The maximum determined prices shall become effective on the 15th day of every calendar month and shall remain in force until the 14th day of the following calendar month,” said the gazette notice.
This means that the oil dealers, long accused of profiteering, can charge consumers a maximum of Sh94.80 per litre for petrol, Sh76.60 for kerosene and Sh87.90 for diesel in Nairobi.
Oil dealers who fail to comply with the new price regime risk a penalty of up to Sh1 million or have their operating licences withdrawn.
A spot check in Nairobi’s city centre on Monday revealed that Shell was selling diesel for Sh88.90 per litre on Kenyatta Avenue. KenolKobil sold diesel at Sh88.80 on Koinange Street while Total was selling it at Sh88.90 on Kimathi Street.
In other areas prices varied depending level of competition and location of outlet.
But in a swift move, which seems to be the government’s twin-pronged strategy to force the marketers to lower their prices, State-owned National Oil Corporation of Kenya reduced its pump prices for diesel by Sh4 per litre to Sh83.90 in Nairobi.
The company said prices across other parts of the country will be reduced proportionately.
“This reduction of pump prices follows the arrival of the first consignment of 25,000 metric tonnes of environmentally-friendly low sulphur diesel at Kipevu Oil Terminal in Mombasa on November 20, 2010,” said National Oil acting managing director Sumayya Athmani.
The company, which has statutory mandate to stabilise the cost of fuel in the country, is required to import 30 per cent of Kenya’s fossil fuel needs.
However, in a statement sent to the Capital Markets Authority and the Nairobi Stock Exchange, one of the biggest dealers, KenolKobil, expressed both surprise and concern at the move, saying the government never consulted with major oil players.
“KenolKobil is not opposed to the ‘price controls’ per se. But these must be transparent and the result of regular reviews by independent, professional, third party bodies and must take into account all cost factors influencing the marketing of petroleum products,” said the statement signed by its chairman and Group CEO Jacob Segman.
The government’s decision comes at a time when the country is going into the December festive season that has previously been characterised by fuel shortages and unjustifiably high price increases.
By NATION CORRESPONDENTPosted Tuesday, December 28 2010 at 16:38
Independent fuel dealers have petitioned Energy minister Kiraitu Murungi, saying the government’s recent decision to regulate oil prices is driving them out of business.
The Kenya Independent Petroleum Dealers Association (Kipeda), is pointing fingers at oil majors who have hiked wholesale prices to favour their own outlets.
They said the move, coupled with the high cost of transporting oil products from Nairobi depots, was eroding their profit margins.
Kipeda chairman Keith Ngaruchi said setting the retail price of petrol at Sh94.03 in Nairobi from December 15 prompted wholesalers, mainly major dealers, to hike wholesale prices to Sh92.
Mr Ngaruchi said with a controlled road tanker delivery rate of 60 cents per litre in Nairobi, retail margins of Sh1.40 were realised before other overheads like bank loans and salaries.
“The margin is reduced as the distance becomes longer, for example, to Thika and Machakos,” he said in the petition dated December 23, 2010.
He appealed to the government to review the policy to save businesses and jobs as margins of independent dealers had dropped to unsustainable levels.
“Our prediction that price control would kill our businesses is now a reality unless the government comes to our aid,” he said.
Mr Ngaruchi said independents buy oil products from multinationals, the National Oil Corporation of Kenya or medium sized shippers but availability for wholesale markets to retailers was a major challenge.
The dealers also complained that the wholesale price of diesel in Nairobi went up from Sh76.50 a litre to Sh84.50.
Cost of super petrol in Nairobi had edged close to Sh100 per litre but declined to Sh94.03 following the setting up of maximum prices.
The Energy (Petroleum Pricing) Regulations 2010 were published on December 3, 2010.
Independent petrol dealers hit by controls read on the issue from http://www.nation.co.ke/business/news/Independent%20petrol%20dealers%20hit%20by%20controls%20/-/1006/1082104/-/gvfawp/-/index.html
By Kennedy SenelwaPosted Saturday, January 1 2011 at 18:29
* “The move to control prices was not well thought out as it is killing the spirit of innovation and competition,” Mr Yasin Hussein, Lunar Service Station.
The price control regime slapped on petroleum products has allegedly precipitated a wave of closures among independent fuel retailing stations, due to profit margin erosion amid high operating costs.
The independent margin on a litre of petrol dropped to Sh1.40 after 60 cents which is the road tanker delivery rate allowed in Nairobi, is deducted, before salaries and other overheads are considered.
According to the Kenya Independent Petroleum Dealers Association (Kipeda), job losses are imminent and retailers who borrowed money but are unable repay due to the high overheads, face foreclosures from banks.
The setting up of a maximum retail cost for petrol at Sh94.03 in Nairobi from December 15, 2010, led to the wholesale price of the fuel brand shooting up to Sh92 in depots, while diesel rose to Sh84.50 from Sh76.50 a litre.
The new control regime has changed the previous structure where fuel prices were cheaper in western Kenya than in Nairobi where demand is higher because of its many economic activities.
Mr Yasin Haji Hussein, who operates Lunar Service Station in Ongata Rongai, is already contemplating on reducing the number of his employees.
Mr Yasin said unavailability of petroleum products, especially the super brand of petrol in wholesale markets had made replenishing stocks very difficult, while margins are low resulting in huge losses.
“The move to control prices was not well thought-out as it is killing the spirit of entrepreneurship, innovation and competition which previously led to motorists enjoying efficient services in many retailing outlets,” he said.
Independents dealers previously posted lower prices than outlets owned by multinationals. Free provision of air pressure and wiping of winds screens using detergents are add-ons offered to motorists which are likely to cease.
The Energy (Petroleum Pricing) Regulations 2010 signed by Energy Minister Kiraitu Murungi were issued as Legal Notice Number 196 and published in the Kenya Gazette Supplement of December 3, 2010.
“Price control has a two-fold aim of protecting consumers and ensuring that industry players recover prudently accrued costs and make reasonable margins,” said Mr Murungi.
Petrol’s maximum price in Nairobi is Sh94.03, diesel Sh87.45. and kerosene Sh75.83. A dealer selling fuel above price set by Energy Regulatory Commission (ERC) risks a fine of Sh1 million, withdrawal of licence or both.
Mr Vanesio Kariuki, who operates Millennium Star Service Station on Kamiti road, said price regulation was ill conceived as problems affecting the supply chain had not addressed by Government to make fuel more affordable.has to act quickly,” he said.