Delayed Payment Linked To Fuel Crisis

Kenya is facing a fuel shortage as a result of delays in government subsidy payments. 

Some petroleum marketers’ cash flow has been harmed as a result, and they have been unable to purchase fresh stocks. 

This week, sections of the country, especially the North Rift, experienced severe fuel shortages. The Energy and Petroleum Regulatory Authority (Epra) acknowledged the deficit but blamed it on supply disruptions without offering any solutions. 

“Unprecedented logistical difficulties have caused the scarcity.” Independent petroleum dealers have run out of petroleum stockpiles as a result of these issues, according to Epra. 

“There are sufficient gasoline supplies in the country, so there is no need to fear.”

According to sources, the fuel shortfall is due to delays in reimbursing oil marketers for more than Sh13 billion in subsidy money.

Last year, the state implemented a plan in which it compensated oil marketers for making large margin cutbacks in order to maintain suggested pump prices. 

This month, the government partially implemented the fuel subsidy, saving consumers Sh155.11 on a litre of petrol. Consumers would have paid Sh143.16 for fuel and Sh130.44 for kerosene if the government had not interfered, according to Epra, underscoring the significance of the subsidy. 

Oil marketers must either dip into their financial reserves or take out loans to refill their fuel supplies due to delays in subsidy payments.

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