EPRA Punishes Oil Marketers Over Fuel Shortage

  • An aerial photo showing motorists lining up for fuel at a fuel Station in Kileleshwa on Saturday, April 2, 2022.
    An aerial photo showing motorists lining up for fuel at a fuel Station in Kileleshwa on Saturday, April 2, 2022.
    ma3route
  • The Energy and Petroleum Regulatory Authority (EPRA) has taken action against oil Marketing Companies (OMC) accused of being responsible for the current fuel shortage experienced across the country. 

    In a notice seen by Kenyans.co.ke, the authority director-general, Daniel Kiptoo, slashed their storage capacity over the next three-month period.

    According to EPRA, the companies increased fuel exports to foreign markets, which in turn hurt the local supply.

    The action was taken after the authority carried out an analysis in the past four weeks whereby motorists faced fuel shortage.  

    An undated image of a petrol station attendant pumping fuel into a car.
    An undated image of a petrol station attendant pumping fuel into a car in Nairobi County in February 2020.
    The Standard

    "EPRA has analysed the daily petroleum loadings over the past four weeks and 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," read part of the statement. 

    The Authority also lauded some OMCs who prioritised the local market hence increased in sales over the crisis period.

    As a result, EPRA directed that such companies be given a corresponding increase of capacity share over the next three import cycles. 

    Petroleum and Mining Principal Secretary, Andrew Kamau, had initially sounded a warning to the OMCs hoarding fuel and prioritising the export market hence creating a countrywide shortage. 

    "If you violate the conditions of your license, we will sanction you," the PS had stated. 

    EPRA is tasked with monitoring petroleum products in order to prevent motor fuel adulterations as well as the increase of export fuel at the expense of the local market. 

    Further, the authority undertakes the retail pricing of petroleum products; diesel, super petrol and kerosene, on the 14th day of every month as stipulated in the Energy Regulations, 2010. 

    The directive comes as the fuel crisis continues to cause an uproar occasioned by the long queues witnessed at various petrol stations. 

    The crisis led to President Uhuru Kenyatta signing the Supplementary Appropriation Bill (Supplementary Budget) that released Ksh34.4 billion to various oil marketing companies. 

    To further avert escalation of the oil shortage, the country recently received 100 million litres of petrol after a ship carrying the consignment docked at the port of Mombasa.

    Ship carrying fuel docking at the Port of Mombasa on Thursday April 7, 2022
    A ship carrying fuel docking at the Port of Mombasa on Thursday, April 7, 2022
    Kevin Mutai (NTV)