Normal Fuel Supply to Be Restored Beginning Thursday

On Monday, the Ministry of Petroleum and Mining said that the supply hitches that caused the nationwide fuel shortage are expected to ease from Thursday.

The shortage resulted from Oil Marketing Companies (OMCs) that import fuel into the country hoarded the commodity over the delayed payments from the government.

The dealers have been complaining to have not been paid about 32 billion shillings, a figure that the Ministry of Petroleum and Mining disputes, saying the outstanding amount is 13 billion shillings.

President Kenyatta signed the first 2021-2022 supplementary budget estimates into law, clearing the path for releasing 34 billion shillings to the Oil Marketing Companies.

According to Petroleum and Mining Principal Secretary Andrew Kamau, the government shelled out 53 billion shillings to Kenyans to cushion the price, which has changed three times in one year in Kenya. He added that the government released 8.2 billion shillings to the dealers on Monday.

ALSO READ: Five Factors That Might Trigger Gold prices In the Short term

‘’The government cannot spend tax payer’s money without a budget. We present what we think we will spend to parliament; they then approve the budget then now we can spend the supplementary,’’

The Energy and Petroleum Regulatory Authority (EPRA) warned the marketers against holding the commodity, saying it was an offense and could attract penalties. The regulator further urged all oil marketing companies to immediately release petroleum supplies to alleviate the current supply crisis adding that the government would settle all the pending claims.

“There have been delays in remitting compensation from the stabilization fund, which has resulted in several Oil Marketing Companies (OMCs) holding back sales to the local market. Therefore, all OMCs are directed to release petroleum supplies to alleviate the current supply crisis immediately.”

Kenya pipeline company (KPC) had confirmed that there was sufficient fuel stock in all their depots across the country

“Kenya pipeline company would like to confirm that there are ample stocks of petroleum products in our system throughout the country to meet demand,’’ KPC Managing Director Dr. Macharia Irungu said.

The acute shortage of the commodity saw many motorists queue for very long hours in various filling stations in search of the commodity.

Many petrol stations turned away customers while others rationed the commodity due to unavailability. Following the long queues witnessed, some motorists had to buy fuel in Jerricans and ferry them to their vehicles.

Some filling stations that managed to have a few liters of the commodity raised the price due to demand, defying the directive on prices issued by the Energy and Petroleum Regulatory Authority (EPRA).

Some PSV vehicles had to halt operations due to difficulty getting fuel, while others doubled their fares.