The government has taken action against oil marketers accused of hoarding fuel creating an artificial shortage crisis in the country.
Energy Cabinet Secretary, Amb Monica Juma, stated that the government will reduce the quota of oil marketers who sold less than their monthly volumes during the period the country was in a crisis.
The government will also increase the quota of the oil marketers who sold above their monthly volumes during the three weeks the country faced a shortage. This, she noted, will take effect immediately.
"I have sanctioned a process of relocating the petroleum import capacity. OMCs who sold above their normal quota during the crises will benefit from additional capacity while those who sold less will have their respective capacity reduced,"
CS Juma further noted that her Ministry in collaboration with those of Interior and Petroleum would ensure the fuel situation in the country is stabilised in the next 72 hours. This will see the movement of fuel on a privileged basis across the county.
She also asked retailers to operate on a 24-hour basis, guaranteeing them that the government will beef up security.
"In this regard, we are in touch with the Ministry of Interior to arrange for the provision of security both for the movement of the freight and as well as for the retailing outlets," CS Juma added.
The Energy boss added that the decision to hoard fuel by OMCs hoping that the monthly price review will favor them is insensitive to consumers. She asked them to either comply with the set regulations or exit the Kenyan market.
"We have determined that some players have been hoarding this product probably speculating that on April 14, price reviews will provide them with a cash windfall. This speculative behaviour is not only in bad faith but also insensitive to the mandate of operators
"This government will not tolerate any entity or person that is causing distress either by creating an artificial problem or stress. In this regard, any entity that is not ready, able or willing to work within the framework of the laws of Kenya is invited to vacate this market promptly," the CS stated.
Her statement comes hours after the government revoked the work permit of Rubis Energy Chief Executive Officer (CEO) Jean-Christian Bergeron.
Bergeron is accused of economic sabotage after his company was accused of not only hoarding fuel across its outlets but also blackmailing the government to pay subsidies for a consignment the oil marketer allegedly sold before the global fuel prices went up.
