Kenya: The Country Stares At Another Fuel Crisis As Fuel Diversion to Transit Continues
Nairobi — The country could be staring at yet another fuel shortage linked to fuel supply challenges brought about by insufficient local stocks in the market.
An independent dealer who sought anonymity told Capital Business that the country has enough fuel stocks but there are dealers who are still prioritizing the export markets at the expense of the local market.
He cited data which was revealed during a closed-door meeting held among energy stakeholders.
A week ago, Energy and Petroleum Cabinet Secretary Monica Juma had raised similar concerns country even as she blamed a group of oil marketing companies for hoarding fuel stocks and/or diverting them to export markets further worsening the crisis.
The importers are expected to adhere to the ratio of 60:40 for local: transit but this has not been the case.
The slow uptake of their fuel by the export markets clogs the pipeline.
KRA has, in the recent past, threatened to auction such fuel belonging to these importers waiting for exportation.
EPRA has also written to them recently requiring them to sell these stocks to oil marketers with petrol stations and promised to reduce their allocated capacity at KPC and give more space to oil marketers selling locally.
The oil marketers are expected to adhere to the ratio of 60:40 for local:transit but this has not been the case.
“The Kenya Pipeline Company (KPC) is still holding more transit stocks than for local. Until this issue is resolved, we will be back in a stockout situation by next week,” the dealer said.
During a forum held between the Energy and Petroleum Regulatory Authority ( EPRA ), KPC, Kenya Revenue Authority( KRA ) and Oil Marketing Companies ( OMCs ) Independent dealers ‘ representatives it was discussed that as of April 20, total local stocks at KPC stood at 46.8 million litres of petrol and 64.64million litres diesel.
This stock is expected to last for 8 days for petrol and 10 days for diesel.
On the other hand, petrol stocks for transit stand at 70.3million for petrol and 61.77million for diesel to last for 19 days and 15 days respectively.
The Energy Ministry on Monday noted that fuel supply was back to normal after an almost two-week shortage brought about by hoarding of the product.
The government has been keen to have the National Oil Corporation of Kenya import at least 30 per cent of the volumes which will reduce overreliance on independent dealers, and assure constant supply to independent dealers in the country.
By Capital FM.
