Twenty five petrol station operating across the country risk heavy penalties after initial investigations by the Energy and Petroleum Regulatory Authority (EPRA) found them to be engaging in manipulation of pump prices.
EPRA Acting Director General Joseph Oketch said the regulator on April 8 issued show cause letter to the 25 oil marketing companies as crackdown on rogue retailers intensifies.
“We issued 25 show cause letters to OMCs whom our team on the ground found had some malpractices. Some of them were selling products above the recommended pump prices which we had announced as EPRA and actions are being take as required,” said Oketch.
Oketch who appeared before the National Assembly Departmental Committee on Energy together with Energy Cabinet Secretary Opiyo Wandayi said despite the shortage being reported in various parts of the country, there is sufficient fuel stock to last the country at least two weeks.
“We do have sufficient stocks for super petrol for the next two week. Tomorrow there is a vessel which will be berthing to discharge 50,000 cubic metres. The way stocks work is on a replenishment model, as you evacuate a ship comes and discharges. It is already confirmed that the ships will be able to sustain the market for the longest,” he added.
Speaking before the committee, Wandayi assured the committee that the government is tageting to take serious actions against companies causing artificial shortage of the commodity.
According to Wandayi, Kenya currently has in its terminals and depots, 183,318 cubic metres of super petrol, 172,760 cubic metres of diesel and 113,575 cubic metres of jet fuel with more shipments scheduled in coming days under the G-to-G framework.
“We shall not just stop at sending show cause letters. We have agreed with EPRA that very severe action in accordance with the law will be taken against entities that are found to have violated their licensing conditions,” said Wandayi.
Among petrol stations under the authority’s radar include Peter Lusweti Filling Station, Station One Filling, Zabco, Milimani Filling Station in Kitale, Equipetrol Filling Station and M7 Kibaruti Filling Station.
The Committee chaired by David Gikaria also noted the need for the country to embark on empowering the National Oil Corporation of Kenya (NOCK) to meet its mandate of building fuel reserves as per Legal Notice No. 43 of 2008.
Under the notice, the state owned oil marketing firm is charged with ensuring the country has enough strategic stocks to last the country 90 days as per global best practices.
However due to limited funding challenges, Kenya currently does not have strategic reserves the country can rely on in case of volatility in the global oil market.
“We are yet to establish fuel reserves. We are working very closely, because we have received proposals from various private players who would want to partner with the government to establish contingency storage facilities in Mombasa but as at now, the country relies on fuel as it comes based on schedule agreed upon,” added Wandayi.
Since last week, various regions have been hit with fuel shortages paralyzing transport as motorists line to secure the commodity despite assurances by the country has sufficient fuel in stock.
