The government has released 20 million litres of fuel to be supplied to non-franchise dealers across the country in a move aimed at averting the looming second phase of fuel shortage.
This decision was reached on Wednesday evening, April 27, following a meeting between the Ministry of Petroleum and Mining, the Energy and Petroleum Regulatory Authority (EPRA), Oil Marketing Companies (OMCs) and Petroleum Outlets Association of Kenya (POAK).
POAK Chairperson, Martin Chomba, noted that the consignment will be made available to non-franchised petroleum retailers as they form the majority of the country's supply chain.
"To correct the fuel supply hitches that have affected the country for the past two weeks, 20 million litres be made available to non-franchised retailers who account for 68 per cent of Kenya's retail network," Chomba stated.
The dispatch will be effected through the localization of two shipping vessels - one ferrying super petrol and the other diesel. In addition, companies that had fuel in transit for export have been asked to localize it.
In a bid to end the stalemate between suppliers and retailers, the OMCs agreed to sell the fuel products to the independents at a reasonable price for a win-win situation.
"We are confident that the above measures are sure to set the fuel supply systems to recovery and eventually restore normalcy," Chomba's statement read in part.
Energy Cabinet Secretary, Amb Monica Juma, explained that the shortage witnessed in Western parts of the country was attributed to motorists and businesses from neighbouring countries crossing over to Kenya, which has the lowest fuel rates in the region.
Save for the influx of buyers from her neighbours, Kenya's fuel shortage has also been linked to suppliers hoarding fuel in their international deposits. According to Petroleum Principal Secretary, Andrew Kamau, a number of OMC were hoarding fuel reserves for export at the expense of the local market.
Kamau revealed suppliers were holding in excess of 34 million litres in their transit volumes within Kenya Pipeline Company (KPC) system for export - a practice he termed unacceptable.
In line with this, the Ministry of Petroleum ordered that the marketers retract the excess consignment from the KPC reserves by 6pm on April 26, or risk being banned from importing fuel into the country.
