Government documents now indicate that a second wave of fuel shortages is likely to hit the country due to unfair trading practices by Petroleum Marketing Corporations (OMCs).

In a statement seen by Kenyans.co.kePrincipal Petroleum Secretary Andrew Kamau has written to the WTO, calling on them to hoard fuel reserves for export at the expense of the local market.

PS Kamau disclosed that some of the suppliers held over 34 million liters in their transit volumes within the Kenya Pipeline Company (KPC) system for export – a practice he called unacceptable.

Petroleum PS Andrew Kamau.

Case

According to the document, only two suppliers, Vivi Energy and Rubis met their export quota and were even loss-making. In contrast, Asharai had the largest reserves, 13.2 million liters, representing 38.8% of excess transit goods.

The Petroleum Ministry has ordered traders to remove the excess shipment from KPC reserves by 6 p.m. on April 26 or face being banned from importing fuel into the country.

Due to poor practice, several service stations have reported dry pumps over the past couple of days, especially in Western Kenya. This has seen long queues resurface, including in parts of Nairobi.

To curb the first phase of the fuel shortage, Petroleum Cabinet Secretary Monica Juma asked the CMOs to prioritize the local market, preferring that they route 60% of their stocks to retailers.

This comes despite an earlier warning from CS Juma to suppliers accused of hoarding the product to capitalize on profits in line with the mid-month price review which saw pump prices increase by Ksh 9.90.

The CS threatened to revoke the licenses of oil dealers who did not comply with ministry regulations.

“I have sanctioned a process of relocating oil import capacity. OMCs that sold above their normal quota during the crises will get additional capacity while those that sold less will see their respective capacity reduced,” she said.

On April 26, a section of officials from the Ministry of Energy and Petroleum and the National Oil Corporation (NOC) left the country for the United Arab Emirates (UAE) to forge a partnership to avoid a new fuel crisis. .

Sources familiar with the matter have suggested that Kenya is seeking to strike a deal that would see the NOC import most of the country’s oil in a bid to ensure security of supply of petroleum products in the country.

Monica Juma during a past press briefing

FILE: AMD CS MONICA JUMA DURING A PAST PRESS POINT