Energy PS blames fuel shortage on marketers’ indiscipline
By George Brian, April 4, 2022
Petroleum and Mining PS Andrew Kamau has come out to explain the current fuel shortage in the country which is now threatening the country’s economy.
Speaking in an interview with Spice FM, Kamau blamed the fuel shortage on the panic buying (purchasing a commodity in excess with fear that you might never find it again in the market after a long time) that has been witnessed in the country for the last couple of days.
He observed that if Kenyans would have not run into panic buying, there could have not been a fuel crisis.
The PS said that the panic buying was caused by an alarm by oil marketers.
“I refer to the current situation as a financial run which normally happens when something spooks people and runs to the bank to withdraw all their money. When this situation happens, the first people might be allowed to withdraw but the bank may deny the 10,000th person who comes to do the same. And that is what is currently happening in the fuel sector at the moment,” he said while likening the current fuel crisis to a situation when bank customers receive information that their bank would be declared insolvent.
Adding: Most people’s cars have never seen a full tank before and all of a sudden their cars are full. The car owners have even bought jerry cans to store extra.”
He said that the panic buying has led to an unforeseen surge in fuel consumption which has made the country exhaust all its fuel stock.
The PS also noted that the current fuel crisis might have also been caused by the greed among oil marketers.
He, however, noted that though the unremitted subsidy might have caused the crisis, its level of contribution is minimal.
“The subsidy is always a month late since we have to do analysis and establish what we owe each supplier and there is nothing new about that.
“What is, however, new here is the fuel prices which have gone up. At the moment, the price of a truck of fuel has gone up by 50 to 60 per cent. If the suppliers don’t have disciplined financial management and proper cash flow then this will get them into trouble,” he said adding that the issue of subsidy is not the major cause of the crisis but the financial indiscipline of the marketers.
Kamau also assured the country that there is enough fuel. “The Kenya Pipeline Company said that they have 90 million litres of fuel in the country,” he said.