President Kenyatta Warns Oil Marketers Against Selling Subsidised Fuel

President Uhuru Kenyatta on Sunday warned of further sanctions on oil marketers who are still exporting fuel to the neighboring countries causing domestic shortages.

The shortage, the worst of which was experienced in the first two weeks of April, has been blamed on oil marketers diverting petroleum products to neighboring countries. The marketers are likely to make a kill from the exports in the absence of price controls in the export markets.

This comes only a few weeks after the petroleum ministry publicly reproved the oil marketers for hoarding fuel to create an artificial shortage in anticipation of a price increase.

An issue that saw the deportation of Rubis CEO Jean-Christian Bergeron was since solved after the government disbursed the due subsidy amount to the oil marketing companies.

Dealers traditionally allocate 60 percent of their fuel for the local market and reserve 40 percent for the neighboring countries. However, since fuel crisis in the country began in March, this allocation was reversed, with 60 percent given to the transit market creating domestic shortage.

“It is a criminal for some people to take the money, given as subsidy, and which doesn’t belong to me because it is Kenyan’s taxes, to instead of supplying fuel products to Kenyans, you go ahead to sell the same fuel at higher prices in other countries. We are watching you and we will take action against you. You will see action,’’

“This money belongs to Kenyans. It is Kenyans’ taxes and you cannot come and tell us there is no fuel in the country yet you are selling the same outside the country so that you can make profits instead of returning this benefit to Kenyan citizens.” President Kenyatta warned Warned during the Labour Day celebrations.

The fuel shortage crisis has caused a lot of confusion around the country, with major activities such as farming and running of day-to-day business activities coming to a halt.

From long queues to a limited amount of fuel at high costs and lack of fuel in some stations, Kenyans have been frustrated and disappointed.

Due to the supply chain constraints in the global fuel markets, there are expectations that the sustained high fuel prices will trickle down to our economy soon.

Kenyans are currently paying 144.62 shillings for a liter of Super petrol, while diesel and kerosene are 125.50 and 113.44 shillings per liter, respectively, in Nairobi.