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Thursday, May 26, 2022

Petroleum Dealers Explain Sudden Shortage of Fuel

  • The Petroleum Outlets Association of Kenya (POAK) has attributed the shortage of fuel to several factors which have created unfavourable trading conditions. 

    POAK, in a statement released on Monday, March 27, explained that at times, they have to deal with unfair practices in the international market such as artificial shortage since 2021.

    The situation was worsened by the ongoing Ukrainian conflict. POAK, which sources the product from multinational companies that are part of the Open Trade System, announced. 

    An undated image of a petrol station attendant pumping fuel into a car in Nairobi County in February 2020.
    The Standard

    “We have been experiencing a tough wholesale market where we have grappled with unrealistic prices and artificial shortages, and at times, both scenarios play out,” read the statement in part.

    In addition, they also blamed the Energy and Petroleum Regulatory Authority (EPRA) for not cushioning them from local wholesale suppliers of petrol, despite issuing the maximum prices of the products at petrol stations.

    This, they argued, has left them at the mercy of suppliers, who sell the fuel at pump prices, making their businesses unsustainable. They further called on the government to intervene in the situation.
    “Although EPRA is supposed to issue a maximum wholesale price to protect small retailers, this has not been happening thus exploiting us to all manner of exploitation from policy directions,”

    “Unfortunately, we are no longer able to sustain this. We hope our government can see ways to save our businesses so that we can continue bringing this service to you,” POAK declared.

    Notably, the suppliers will continue to explore available options to restore the flawless supply of the product. 

    On Monday, March 28, several motorists across the country flocked petrol stations to purchase either petrol or diesel. A majority of them was turned down by attendants over lack of fuel.

    An increase of the fuel costs in the EPRA review for the month of March 15 to April 14 sparked concern among Kenyans who had no other option than to dig deeper into their pockets to make ends meet as the price of other commodities rose. 

    An image of a fuel pump at a Nairobi petrol station on July 14, 2021.
    An Image of a Fuel pump at a Nairobi Petrol Station on July 14, 2021.

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