May 20, 2024

EPRA Punishes Oil Marketing Companies Over Fuel Shortage

2 min read

EPRA has taken action against oil marketing companies (OMCs) accused of the present nationwide fuel scarcity.

Daniel Kiptoo, the director-general of the Energy and Petroleum Regulatory Authority, announced a reduction in storage capacity for the next three months in a notification.

According to EPRA, the corporations expanded fuel exports to the foreign markets, putting local supplies at risk.

The measure was taken after the authority conducted an investigation in the previous four weeks, which revealed that motorists were experiencing fuel shortages.

“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,” read part of the statement. 

The Authority also praised some OMCs for prioritizing the local market, resulting in greater sales throughout the crisis.

As a result, EPRA ordered that over the next three import cycles, such enterprises be given a proportionate increase in capacity share.

Andrew Kamau, the Principal Secretary for Petroleum and Mining, had initially issued a warning to OMCs who were stockpiling fuel and prioritizing the export market, resulting in a nationwide shortage.

“If you violate the conditions of your license, we will sanction you,” the PS had stated. 

Fuel shortage returns again over the State-backed subsidy uncertainties

EPRA is in charge of overseeing petroleum products in order to prevent motor fuel adulteration and the expansion of export gasoline at the expense of the domestic market.

Furthermore, as required by the Energy Regulations, 2010, the authority conducts retail pricing of petroleum products such as diesel, super petrol, and kerosene on the 14th day of each month.

The directive comes as the fuel problem continues to enrage the public, as seen by the huge lines at numerous gas stations.

President Uhuru Kenyatta responded by signing the Supplementary Appropriation Bill (Supplementary Budget), which released Ksh34.4 billion to several oil marketing businesses in response to the situation.

To prevent the oil crisis from worsening, the government just got 100 million litres of gasoline after a ship carrying the fuel ran aground.

Also read, 

What Causing Fuel Shortage In Kenya; Crisis To End in Two Days, Government Says

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