Energy and Petroleum Cabinet Secretary Opiyo Wandayi has ordered One Petroleum Limited to exit the super petrol consignment it imported into the country illegally.
In a statement, Wandayi has also directed the company including the Oil Marketing Companies which purchased the fuel to immediately withdraw all invoices issued and raise credit notes.
“Oil Marketing Companies should neither pay the invoices nor uplift product from this consignment,” said Wandayi.
As a result the ministry has also barred the Energy and Petroleum Regulatory Authority (EPRA) from the monthly computation of petroleum products.
The decision has been reached as investigations into the import depends and has already seen the resignation of top officials in the energy docket including Energy Principal Secretary Mohamed Liban, EPRA Director General Daniel Kiptoo and Kenya Pipeline Company Managing Director Joe Sang.
Wandayi said the import contravened the Government-to-Government oil import deal which allowed Kenya to secure fuel from four state owned firms; Aramco Trading, Fujairah FZE, ADNOC Global Trading Limited and Emirates National Oil Company (Singapore) Private Limited.
Wandayi said the 60,000 metric tonnes of imported super petrol also risked the integrity of the system which has ensured consistent supply security and price stability.
“The consignment is priced at Ksh 198,000 per metric tonne compared to Ksh 140,000 per metric tonne under the G-to-G arrangement, an increase of Ksh 58,000 per metric tonne which would result in approximate rise of Ksh 14 per litre in pump prices on this consignment alone,” he added.
Preliminary findings indicate that the officials manipulated data of the country’s fuel stocks due to rising global fuel prices and public anxiety to create impression of fuel shortage.
