Page 20 - DMEA Week 29

DMEA FUELS DMEA

Kenya hikes fuel prices

KENYA KENYA’S Energy and Petroleum Regulatory average landed cost of imported diesel went up
Authority (EPRA) hiked prices for refined from $228.62 per cubic metre in May to $302.15
petroleum products last week, citing a rise in the per cubic metre in June, a rise of 32.16% m/m.
cost of imported gasoline as justification for its EPRA said it had not included kerosene in its
decision. calculations because the country did not import
In a statement, the government agency said this type of fuel during the relevant period.
it was increasing per-litre prices for gasoline, “In the period under review, there was no
diesel and kerosene by KES11.38 ($0.11), kerosene discharged at the port of Mombasa,”
KES17.30 ($0.16) and KES2.98 ($0.028) EPRA director-general Robert Pavel was quoted
respectively. As a result, buyers in Nairobi will as saying in the statement.
now have to pay KES100.48 ($0.93) per litre for Pavel was speaking around the same time that
gasoline, KES91.87 ($0.85) per litre for diesel Kenya’s Petroleum principal secretary Andrew
and KES65.45 ($0.61) per litre for kerosene, it Kamau drew attention to the lack of kerosene
noted. imports, saying that this development had made
This is the largest monthly increase in more the latest fuel price hike more dramatic than it
than a decade, according to Kenyan press might have been otherwise.
reports. Kamau stated that he did not expect prices to
The new pricing schedule took effect on July remain at current levels for long. He was speak-
15 and will remain in place for 30 days, EPRA ing after a number of Kenyan observers high-
stated. “The prices are inclusive of the revised lighted the significant gap between diesel and
rates for [the] petroleum development levy on kerosene prices under the new pricing regime,
super petrol and diesel as per Legal Notice No. pointing out that traders now had an incentive to
124 of 10th July 2020 and 8% Value Added Tax blend cheaper kerosene into more costly diesel in
(VAT) in line with the provisions of the Finance order to maximise their profits.
Act 2018 and the Tax Laws (Amendment) Act “Kerosene was not imported in the last cycle,
2020,” it added. and it has been coming in reduced volumes
According to the agency, prices went up before then,” Kamau told the Daily Nation in an
because the average landed cost of imported interview. “That is why we have that difference,
gasoline climbed from $248.21 per cubic metre which is only temporary and will normalise once
in May to $279.58 per cubic metre in June, a rise we have more kerosene being imported at the
of 12.64% month on month, and because the current international crude oil prices.” ™

NEWS IN BRIEF

Morocco to fine fuel efficiency. Fugro completes phase one
Following the upgrade, the turbine’s total
distributors for price-fixing production has increased by 10.7 MW while of North Field site study
using the same amount of fuel, according to a
Morocco’s antitrust regulator plans to fine recent press release. Dutch global geological survey firm Fugro
fuel distributors up to 10% of their turnover GE’s MXL2 upgrade helps the operators of has announced the completion of the first
for uncompetitive behaviour, local media GT13E2 gas turbines to achieve up to a 1.5% phase of its offshore site investigation for
reported this week. rise in combined cycle efficiency. LNG firm Qatargas’ North Field ‘production
The competition council has been Despite the challenges imposed by the sustainability compression’ phase.
holding closed-door meetings with coronavirus (COVID-19) pandemic, GE The North Field is the world’s biggest single
distributors, sources told le360.ma, adding Gas Power completed the upgrade in six non-associated natural gas field. It is located
that the fines could be as high as MAD4bn months instead of 18 months that the project’s 80 nautical miles (nm) offshore north-east
($400mn). It sounded an alarm in a report execution should take. Qatar peninsula.
in May, accusing distributors of price-fixing This project came following the successful Phase one of the project focused on the
and exchanging sensitive data. upgrades undertaken on two other gas geophysical scope, while the geotechnical
turbines at ADNOC Refining’s general utilities scope, which is included under phase two, will
plant in Ruwais over the past years. continue until next month.
GE upgrades Adnoc in the Middle East, North Africa, and South teams on board the company’s dedicated
Fugro noted that the in-country project
The President & CEO of GE Gas Power
Refining’s general utilities Asia, Joseph Anis, said: “As organizations vessels Proteus and Adventurer are executing
around the world explore options to balance
the fieldwork.
plant in Ruwais the growing need for electricity against testing and P-S logging.
The fieldwork includes cone penetration
climate change concerns, upgrade solutions
General Electric (GE) Gas Power has installed offer an effective and affordable means to According to the company, the final
MXL2 upgrade on a GT13E2 gas turbine at increase power output and lower emissions deliverables will comprise a bathymetric and
ADNOC Refining’s general utilities plant per megawatt generated.” geophysical survey, as well as a geotechnical
in Ruwais in the UAE to raise the plant’s appraisal of the soils that have been

P20 www. NEWSBASE .com Week 29 23•July•2020