Vivo market share up to equal KenolKobil

What you need to know:

Total came third with 17.4 per cent of the 1.53 million metric tonne petroleum sales.
Vivo enjoyed a 45.1 per cent share of lubricants sales up from 38.8 per cent a similar period last year.

Vivo Energy is the biggest winner in petroleum market share over the past three months, rising 2.6 per cent to tie with Kenol Kobil at 18.5 per cent as the big boys tightened stranglehold on the market.

The just released second quarter 2017 report by the Petroleum Institute of East Africa (PIEA) indicates that Total came third with 17.4 per cent of the 1.53 million metric tonne petroleum sales.

The document reveals the expanding market share of the top seven companies, by 9 per cent to stand at 74.6 compared to last quarter’s 65.6 per cent.

Vivo enjoyed a 45.1 per cent share of lubricants sales up from 38.8 per cent a similar period last year.

It was followed by Total at 32.7 per cent, a drop from the 38.1 per cent recorded the previous quarter. In the LPG segment, Lake Gas led with a 23.1 per cent market share followed by Total’s 19.7 per cent.

READ: KenolKobil makes biggest market share gain on rivals

ALSO READ: Kenya’s top three oil marketers lose 20 per cent market share

Addressing stakeholders in Nairobi, Petroleum Principal Secretary Andrew Kamau said it was too early to celebrate oil discovery since Kenya was still carrying out exploration to establish viability of available reserves.

Pass tax benefit

PIEA’s chairman Powell Maimba welcomed reversion of Liquefied Petroleum Gas (LPG) to the zero-rated bracket from the VAT exempt rule saying this would enable LPG suppliers to pass over the tax benefits to consumers.

He said there was steady rise in sales of super petrol—by 9 per cent from 381,743 metric tonnes to this quarter’s 415,247—indicating increased use of private vehicles by Kenyans going about their chores like dropping children to school and going to work.

“The expanded road network as well as investments in petroleum outlets across Kenya, thanks to devolution, shows there are many investment opportunities out there for improving public transport system,” he said.

The PIEA chairman also hailed the introduction of the regional electronic cargo tracking system saying it had slowed diversion of fuel into the local market.