In a statement dated Saturday, April 2, the authority admitted that the shortage was caused by a delay in compensating margins to Oil Marketing Companies (OMCs).
According to EPRA, OMCs resorted to hoarding fuel while awaiting compensation.
“The recent escalation in international prices has resulted in huge differences between the actual calculated and the stabilized pump prices.
“There have been delays in remitting compensation from the stabilization fund and this has resulted in a number of Oil Marketing Companies (OMCs) holding back sales to the local market,” read the statement in part.
EPRA, in conjunction with the Ministry of Petroleum, further directed the companies to release the fuel promising to settle all the dues owed to them.
“EPRA in conjunction with the Ministry of Petroleum and Mining has, however, assured OMCs of the Government’s commitment to promptly settling all pending claims on account of the stabilization process.
“All OMCs are therefore directed to immediately release petroleum supplies in order to alleviate the current supply crises,” added the statement.
The rise was caused by the Covid-19 effects across the world that was quickly succeeded with the ongoing Russia-Ukraine war destabilising the supply of the crucial product.
Prices of petroleum in the international markets have been on an escalating trend which caused Government to implement a petroleum stabilisation mechanism in order to cushion consumers from the otherwise high pump prices.
In a separate statement on Saturday, the Kenya Pipeline Company (KPC) also admitted that there was enough oil stock across the country’s depots enough to serve the entire country.
KPC’s current stock position in all their facilities as of Saturday, March 2 noon indicates that there are over 69 million litres of super petrol, more than 94 million litres of diesel, more than 13 million litres of kerosene and over 23 million litres of jet fuel available,” KPC stated.
Source: KENYAGIST.COM
