Platts Management
Introduction/Purpose
Platts prices the global benchmark for petroleum product pricing. In Kenya’s oil and gas sector, particularly for imported “white products”, daily Platts assessments are the official reference for customs valuation, bond computations, inventory costing, and commercial agreements.
Rockeye Trade’s Platts Management module centralizes global benchmark price assessments (e.g., diesel, gasoline, jet fuel) published by S&P Global Commodity Insights. This ensures consistent pricing references, supports compliance with Kenya Revenue Authority (KRA) and
Energy & Petroleum Regulatory Authority (EPRA) requirements, and enables seamless integration into downstream processes such as bonded entries, landed cost calculations, and inventory valuation
Platts Management as a Process
In oil and gas trade systems such as Rockeye Trade, Platts Management refers to the structured handling of global benchmark price data and its application across trade operations
- Capturing Benchmark Prices:
Daily or periodic input of Platts prices for each petroleum product, forming the baseline for valuation and costing. - Currency Alignment:
- Prices are typically referenced in USD but converted to KES (Kenyan Shilling) using the daily exchange rates published by the Central Bank of Kenya (CBK) or Kenya Revenue Authority (KRA).
- Integration with Trade Operations:
- Purchase Orders: Product costs are calculated based on Platts price plus agreed premiums or discounts.
- Bond Entries (TR-800): Customs valuation for imported petroleum products uses Platts as the reference.
- Invoicing: Both buyer and seller align on Platts plus margin to ensure transparent and fair pricing.
- Reporting: Provides visibility into fluctuations between global benchmark prices and local landed costs.
- Compliance:
Maintains adherence to EPRA pricing frameworks, customs regulations, and other statutory requirements.
Why Platts Matters in Kenya
- Regulatory Valuation
Under the East African Community Customs Management Act (EACCMA) and KRA bond regulations, import duties on petroleum products are assessed based on CIF value (Cost + Insurance + Freight). Platts benchmark prices provide a transparent and globally recognized reference for the “Cost” component, supporting objective customs valuation when invoice values are reviewed or challenged. - Bond & Entry Calculations
When preparing a TR-800 Bonded Entry Declaration, the bonded value is derived from Platts benchmark rates plus applicable freight, insurance, and premiums/discounts, converted to KES using daily CBK/KRA exchange rates. This ensures accurate duty suspension and compliance - Inventory & Costing
Platts rates feed into unit cost calculations for stock receipts, Weighted Average Cost (WAC) adjustments, and month-end inventory valuation for products. These rates are typically adjusted for logistics costs to reflect true landed cost. - Contract Settlements
Commercial supply agreements frequently peg pricing to daily, weekly, or monthly Platts assessments with an agreed premium or discount, ensuring fair and transparent settlements for spot trades and long-term contracts.
How To Navigate
- Log in to Rockeye Trade.
- From the left-hand menu, click Transactions → Bond & Entry Operations → Platts Management.
How To Add Plattes
Click “Add New” to create a Platts price record.
This opens the Platts Input Form.
- Date* – Select the date for which Platts reference is applicable.
- Currency* – Choose the operating currency (KES, USD etc).
- Products & Prices* – Input benchmark prices per product category:
- MSP – Premium motor spirit (Petrol).
- AGO – Automotive Gas Oil (Diesel).
- Jet A1 – Aviation fuel.
- DPK – Dual purpose kerosene.
- Notes – Add any remarks for internal tracking (e.g., special market events, government notifications).
- Attachments – Option to upload supporting documentation (official Platts circulars, government gazette notifications, etc.).
- Click Submit → The entry is recorded and appears in the Dashboard.
- Click Discard → To cancel without saving.
- Once the Platts record is locked to its effective date (cannot be retroactively altered without proper control by admins).
- Any trade transactions referencing daily Platts will automatically adopt these benchmark rates.
Listing
Once on the Platts Management screen, you’ll see a table of existing records:
Code Auto-generated record ID (e.g. UTD-PM-10003).
Date Effective date of the rates.
Currency Currency code (e.g. KES).
MSP-N300201/ AGO-N300301/Jet A1-N300701/DPK-N300501 : Platts rate per product
Refrence Video Link
