Energy Cabinet Secretary Opiyo Wandayi on Wednesday, March 25, accused some Oil Marketing Companies (OMCs) of creating a man-made fuel shortage in the country.
While addressing reports on a fuel shortage in the country, Wandayi claimed that some OMCs were hoarding fuel products in anticipation of a fuel price increase following the situation in the Middle East.
He maintained that the government would not increase pump prices and that the fuel would retail in the country at the prices gazetted by the Energy and Petroleum Regulatory Authority (EPRA) in the March 14 review.
“We note with grave concern reports of product hoarding and speculative withholding of stocks by some oil marketing companies in anticipation of price movements. That conduct is commercially opportunistic, contrary to the public interest and is in direct breach of licensing obligations.
“All licenced OMCs are strongly reminded of their legal obligation to maintain continuous supply and release products at EPRA gazetted prices,” Wandayi stated.
The Energy CS reiterated that the OMCs caught hoarding fuel risk serious sanctions imposed by the Ministry of Energy.
He assured Kenyans that there was no fuel shortage in the country and asked motorists not to engage in panic buying.
Wandayi stated that the county’s system from importation, through storage and pipeline distribution to the retail network, is functioning as required.
‘I must also encourage Kenyans not to engage in panic buying. It is unnecessary because, as I have said, we have enough stock in the country; now, tomorrow and in the future,” the CS declared.
The Energy Boss added that the country was covered, even if the war in the Middle East persists.
He disclosed that the Government-to-Government deal signed for the supply of fuel guaranteed the country would always have access to fuel products.
Wandayi revealed that none of the G-to-G partners or IOCs has indicated to us that there is a problem in meeting their contractual obligations.
“It must be understood that the framework agreements that the GOK has with these IOCs do not restrict them from any part of the world when it comes to sourcing fuel.
“The state of Omuz is just one pathway through which fuel moves. These IOCs are well-established entities with the capacity to source fuel from anywhere in the world and have it delivered to us. There is no cause for alarm as far as the GOk is concerned,” he reiterated.
The CS gave his assurance after Kenyans raised concerns after they were unable to get fuel from multiple petrol stations across the country.
In addition, some fuel retailers had threatened to cut the supply of petroleum products in the country if the government did not increase pump prices to reflect the ongoing crisis in the Middle East.
