Listen to This Article Enhance your reading experience by listening to this article.

Kenya continues to suffer from a sustained artificial fuel shortage for the third consecutive week, piling pressure on motorists ahead of tomorrow’s monthly review of pump prices by the Energy and Petroleum Regulation Authority (EPRA). 

EPRA has now called out Oil Marketing Companies (OMCs)for causing the  shortage by breaching the recommended ratio of 70/30 for local/transit fuel consignment to ease their cash crunch.  

“EPRA has analysed the daily petroleum loadings over the past four weeks and noted that a number of OMCs have in the period under review given priority to export loadings while the local market was left to suffer intermittent supply,” EPRA said in a statement yesterday. 

Capacity allocation

As a reprisal, the regulator has proposed reduction of oil capacity allocation to all OMCs who increased their transit volumes over and above the recommended quota during the crisis period. 

Those OMCs whose local volume increased over the same period will have a corresponding increase of capacity share that is expected to commence April 15. 

The energy regulator had earlier threatened financial penalties and deregulation of OMCs found hoarding fuel.

Kenya Pipeline Company on April 2 said that the country had enough fuel stocks and more are at the dock awaiting offload.

Energy Cabinet Secretary Monica Juma confirmed that additional 100 million litres of super petrol docked last Thursday awaiting dispatch through KPC and Oil majors. 

But until yesterday, long queues and scramble for the precious commodity persisted in various parts of the country despite a Sh34 billion supplementary budget to compensate OMCs and subsequent orders by State for release of oil stocks to small dealers to ease the shortage.

Oil majors have defied the orders in what seems to be anticipation that the prices will hike after tomorrow’s price review before finally releasing their stock, citing pending compensation by the State. 

“There is new consignment yet to be released to the market on the April 14, and the prices are likely to go up. On shortage, I think the major oil companies have enough stock but are reluctant to release them to the struggling independent oil dealers until the coming review so that they can release the fuel at higher prices,” said a source privy to the oil dealings who requested anonymity. 

A spot check by the People Daily across the country showed the commodity was still in limited supply, forcing different outlets to increase prices with motorists and boda boda’s opting to either park their vehicles at home or search for it in different towns.

Several petrol stations on the outskirts of Nairobi did not have fuel. Nearly all the main filling stations along Mombasa Road which at least had stock experienced long queues stretching about 500 metres into the main road.

It was a similar situation along Thika Super Highway, Lang’ata and Jogoo roads, some placing purchase limits to Sh1,000. 

In Western region, Nakuru, Kisumu and North Rift, motorists scrambled for fuel at various petrol stations due to the erratic supply, forcing Public Service Vehicles (PSV) in the region to increase fares to compensate for hiked prices at the pumps. In Vihiga and Eldoret, a litre scooped more than Sh200 per litre in some filling stations, high from the set Sh135. 

“We are almost being pushed out of business by this fuel shortage. The government should address this issue once and for all,” said Richard Rono, a driver plying Iten-Kabarnet Road.

The situation has adversely affected farmers’ preparation for the planting season as they have no fuel for their tractors. Kipkorir arap Menjo, a Kenya Farmers Association (KFA) Director said the situation has been worsened by people who flock petrol stations and buy the fuel using jerricans and re-sell to motorists at higher prices. 

“Motorists and motorcycles should be given a priority by petrol owners to buy fuel.  Others are just there to inconvenience other people for selfish gain,” said Menjo.

The shortage could see prices of commodities rise even further as transporters pass the costs to consumers. 

Kenya Transporter Association (KTA) is already crying foul of the huge losses incurred due to the shortages that is likely to fan inflation. 

“Losses are incurred by other related sectors like agents and manufacturers as demurrages and delays in delivering essential materials add to costs of production and the final product,” KTA chairman Newton Wang’oo said in a statement. 

To ease pressure on consumers, the government last week released Sh8.2 billion of the Sh34 billion to compensate oil multinationals who are demanding more than Sh20 billion from the government’s subsidy program.

National Treasury Cabinet secretary Ukur Yatani warned after reading the 2022/23 budget statement that the fuel subsidy programme is unsustainable and that the situation could get out of hand, as it needed between Sh10 billion and Sh15 billion more every month to keep prices in check.

Elsewhere, , Transport activities in the Port City of Mombasa and the neighboring counties have been plunged into chaos as motorists grapple with growing fuel shortage.

Ripple effect

The shortage has had a ripple effect on food prices at Kongowea market and other local groceries, leaving residents at a disadvantaged position. The shortage struck all the sub counties including Nyali, Likoni, Kisauni, Mvita, Jomvu and Changamwe.

Some of the motorists including taxi drivers said they had spent the whole night driving around in search of petrol to no avail and they had resolved to pack their vehicles until normalcy returns.

“This crisis has plunged us into suffering and misery. I rely on the bodaboda business to feed my family. Schools are reopening yet we are in the middle of this crisis,” posed Abdulaziz Omeda, a resident of Gichanga.

John Ria- a Mombasa resident, said he spent the whole night moving from Likoni, to  Changamwe and Nyali in search of fuel.

—Additional report by Reuben Mwambingu