The Ministry of Energy proposed new guidelines for petroleum importation aimed at enabling the Government to regulate the rising cost of fuel.
In a Gazette notice dated Friday, December 23, Energy Cabinet Secretary, Davis Chirchir, published the Petroleum Importation Regulations 2022 which proposed the importation of petroleum products through the Open Tender System (OTS)
He explained that the move would make the process of importation more transparent even as the new laws created a window for the Government to negotiate the prices for petroleum products.
"Recognizing the need for government to government arrangements for the importation of petroleum products which may enable the country to negotiate for discounts on product cost and freight while at the same time enabling the country to access extended credit periods from suppliers.
"This will save the country from the current pressures on foreign exchange reserves," read the notice in part.
Further, the ministry explained that the OTS process would ensure that the petrol is imported in a more cost-effective manner.
The ministry added that the law would consolidate various legislations and give clear guidelines on what was required by the Government during the importations.
Chirchir noted that the current status quo of having various pieces of legislation was affecting both importers and consumers.
"Failure to recognize the transport and storage agreement and the supply coordination committee in the existing legislations as critical enablers of the petroleum importation process promotes lack of transparency and may lead to inefficient operations," read the statement in part.
Additionally, the ministry added that various government agencies would monitor the implementation of the OTS on a monthly basis.
On the other hand, the Energy and Petroleum Regulatory Authority (EPRA) also recommended the passing and operationalisation of the regulations.
"A detailed review will be undertaken in five years to ensure the continued relevance of the regulations to the industry needs," read the gazette in part.
