Fuel shortage: Gov't to punish oil marketers for hoarding, selling fuel outside the country

The Energy and Petroleum Regulatory Authority (EPRA) has accused some oil marketers of shipping out fuel supplies as the prevailing fuel shortage in the country enters the third week.

In a letter addressed to Petroleum Principal Secretary Andrew Kamau and copied to CEOs of the oil marketing companies (OMCs), the energy sector regulator has highlighted the increase of export loads by some marketers.

“The Energy and Petroleum Regulatory Authority (EPRA) has analyzed the daily petroleum holdings over the past four weeks and has noted that a number of OMCs have in the period under review given priority to export loadings while the local market was left to suffer intermittent supply,” noted EPRA Director General Daniel Kiptoo Bargoria.

As retribution, EPRA has proposed the reduction of capacity share for all OMCs who raised their export volumes across the next three import cycles and a corresponding increase to reward marketers whose local volumes sales increased.

EPRA’s condemnation of OMCs comes as long queues at petrol stations remain the order of the day in spite of the regulator and marketers striking a deal last week to resolve the fuel supply impasse.

Fuel shortages have remained sticky in most parts of the country at the start of the week including in the capital Nairobi in spite of assurances by government officials on supply at the end of last week.

According to sources, some marketers have likely resulted in hoarding fuel products once more in anticipation of a higher maximum pump price to be announced by EPRA on Thursday this week.

Across the country, Kenyans continue to pay a premium above the published maximum pump prices by EPRA with prices going as high as Ksh.230 for a litre of super petrol in some parts.