Today's Headlines
- Lessons and Implications of the Confirmation of Charges Against Kenya's 'Ocampo Four'
- Finance Minister Quits Over ICC Charges
- Shortage of HIV Test Kits Raises Concerns
- Living On the Edge in Turkana Region
- Ali Breaks Silence, Describes Delight At Acquittal
- Uhuru, Ruto Eligible for Presidency - CIC
- Tea Sector Posts Record Earnings in 2011
- Resettle IDPs, Urges Annan
- Uhuru, Muthaura Have Done the Right Thing
- All Displaced People Should Return Home
- Concern Raised As Parents Shun Schools in Poll Violence Hotspots
- Ruling On IEBC Hiring in February
- Country Working Towards Conditions Needed for Direct Flights to U.S.
- How ICC Claimed Kibaki's Lieutenants
- Geothermal Project to Receive Sh10 Billion Funding Boost
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- Speed Up Building Port
- Uhuru and Muthaura Did Well to Quit Posts
- A Full Plate Awaits Githae
- Clashes Continue in Moyale
- Baraza Case to Be Heard Monday
- Two Firms in Joint Venture to Drill for Oil Near Lodwar
- Exit Uhuru, Muthaura
- ICC Charges Hound Uhuru Out of Treasury
- Consumers Grow Despite Inflation
- Poor Relations Between Banks Blamed for Cash Shortages
- Fish Prices Up As Vegetable Supply Dwindles
- Consumers to Pay More for Milk and Bread As Prices Rise
- Kibaki Tasks Ex-Dar CJ to Lead Probe in Kenya
- Mombasa Port Cargo Congestion Forces Three-Month Fees Waiver
3 August 2010
Nairobi — National Oil will finance importation of petroleum products from commercial sources.
Managing director Mwendia Nyaga said the oil marketer has secured financiers and expects to start importation by the end of the year.
"The money to finance oil purchase will be sourced from commercial sources and not from the government," said Mr Nyaga.
He said Nock will begin by importing one product line before gradually moving to crude oil importation.
"We believe it is prudent to first start by importing processed products before moving to crude oil importation in six months time," he said.
The firm, he said, will negotiate for competitive prices for the products in order to cushion consumers from price fluctuation.
The move to have National Oil Corporation of Kenya import 30 per cent of the country's oil, he said, will also lead to stable fuel supply in the market.
Mr Nyaga spoke during the firm's customer day at the firm's retail outlet in Embakasi on Monday.
He said they are seeking to create a positive business model that nurtures the customer-retailer relationship and encourages staff to do the same.
The event was held at all 60 running stations across the country. National Oil has plans to increase its outlets to 165 stations by 2013.
Since 1994 when the oil industry was de-regulated, the mandate for Nock to import 30 per cent of the country's crude oil requirements ceased and the government opted for the Open Tender System (OTS).
The system was initially implemented to create an orderly market place with a hope of reducing energy costs through the economies of scale.
Kenya's current crude requirement is about 160,000 metric tonnes per month.
Under the OTS, each petroleum company's monthly crude processing requirement is computed in accordance with a formula set by Kenya Petroleum Refineries Limited (KPRL).
The fuel industry continues to face rising crude oil prices and high financial cost, fuel shortages, congestion at port, pipeline constraints and limited processing capacity at KPRL, among other challenges.
