Shilling is weakening against all major currencies Yuan and Yen. The shilling continues to weaken as long as huge monthly requirements
The once off dollar requirement for an approximated USD 550M per month to pay a whole month’s supply is putting unnecessary pressure on the shilling
The difference between USD buying rate at the time of importation and the time if payment, six months lag, is massive and is yet to be factored into pump prices
Mumias East MP Peter Salasya on yesterday faulted Kenya Kwanza Administration for not opening up to public on Government to Government oil deal which has left the country dry and weakened the dollar reserve
Speaking at Parliament Buildings on Thursday 23rd November, the youthful legislator demanded the resignation of Energy Cabinet Secretary Davis Chirchir terming him as the centre stage of the oil scandal where Sh17B is said to have procured the consignment
Salasya, noted that the since 2004 to December 2022, Kenya and the region was supplying oil through open tender system that worked perfectly under the watch of Ministry of Energy, now Ministry of Petroleum and Mining
“If this was truly G2G, wouldn’t the oil come from the refineries including Saudi Aramco, ENOC and ADNOC and loaded in ports in Saudi and United Arabs Emirates [UAE]
Salasya wondered why the three importers are using letters of credit from all willing banks in Kenya and the region. “Why are these three suppliers seeking letters of credit confirmation from overseas banks if there’s truly a G2G dea, asked if kenyas’ sovereignty not enough credit guarantee
And why there’s no memorandum in place with the said government if it was theirs. “Why is the being outsourced from Russia, Turkey and the greater Europe,” he poked figures
The Ministry of Petroleum and Mining has been the referee to the OTS operation and ensured that no party breaches the agreement. The ministry is not a signatory to the OTS but a referee and custodian of the agreement. The minister, without public participation, amended the Petroleum Act in December 2022 to accommodate the G2G cartels,” Salasya disclosed
According to documents availed to our investigative desk, is that the OTS data from the year 2018 to March 2023 shows the premiums for Super Petrol went as low as negative $13.29 and the highest year average was USD32.96/MT in the year 2022
Automotive Gasoil, Diesel, premiums averaged below USD15/MT for the entire period under study
Jet A-1 premiums were as low as USD0.54/MT. According to the MP, these premiums are from the open market, meaning that any G2G premiums should be below the market prices
From the current fixed premiums in the G2G hoax, the country is paying an average of USD76.26/MT more for Super Petrol, USD 97.38/MT for Diesel and USD 93.70 for JET A-1
“This translates to USD7.6 M per shipment and about USD60M (9.4 Billion Kshs) per month from the eight shipments delivered each month. This is easily about 110 Billion Kshs in a year of untaxable graft income,” he stated while reading his dossier
The MP, noted lack of transparency in the open market has costed this country, where ships are being delivered with no regard to planning just to pump oil to the country and increase the billions for the cartels
Lack of flexibility- Fixed at three, almost four times the usual OTS premiums, locking out huge pricing benefits from the open market
Increased demurrage– These are accruing every day as the regional banks from whom the graft individuals are seeking LC confirmation from blatantly refuse to append confirmation sighting excessive exposure on the LCs