Government asked to control number of oil marketing firms

Vivo Energy Kenya Managing director, Polycarp Igathe. The number of oil marketing firms has more than doubled in a span of two years. (PHOTO COURTESY)

Oil industry players want the Government to regulate licensing of new oil marketers to uphold standards and foster safety of petroleum products.

Vivo Energy Kenya Managing director, Polycarp Igathe said the number of oil marketing firms has more than doubled in a span of two years.

He said when Jubilee took over the reins of government, there were about 55 oil marketers but to date there are 104 oil marketing firms licensed to do business in Kenya.

''This is not competition fighting but is a national issue and cause for concern as there are cases already of much of oil products adulterated in the market leading to severe breach of safety and standards for the products,'' Igathe said.

He faulted the Ministry of Energy and Energy Regulatory Commission for not being diligent enough to ensure sanity prevails in the industry.

Igathe who was speaking during the inaugural Shell Commercial Road Transport conference at the Sarova Whitesands Beach Resort & Spa in Mombasa last week, noted that out of the total number of oil marketing firms, only five controls 90 per cent of oil products.

He challenged the Government to move with speed and ensure there are adequate oil storage facilities in the country to avert oil and fuel crisis, which he claimed in most cases was done by unscrupulous traders who hoard for profit gains.

He singled out the need make good use of the huge storage facilities at the closed down Kenya Petroleum Oil Refinery Limited (KPRL) plant in Changamwe and have Kenya Pipeline Company (KPC) takeover the storage handling there.

''Why has the Government taken so long to grant permission to use the KPRL and even sanction a private investor at Konza area open up storage facility,'' posed Igathe.

He cautioned owners of fuel transporting firms to be extra vigilant and have detailed information on tanker drivers they employ following revelations that two of the terrorists who carried out the Garissa University College massacres at one moment in time worked in the energy sector.

Igathe at the same time recognised the tremendous growth that the sector has achieved and reiterated the company's support for the sector.

''From 2014, Economic Survey report, it is clear to see that the sector is growing and making a significant contribution to the country's economic growth,'' he said.

He added that the investment that Vivo Energy is injecting into its networks of service stations clearly demonstrates the commitment they have to ensure they they are able to support customers with high quality products and services," Igathe said.

Vivo Energy Commercial Manager, Joseph Kahuko said the main aim of the one-day conference was to offer answers to the challenges posed in the commercial road transport sector.

Transport policies

Kahuko said the conference was also aimed to equip participants with comprehensive , practical and up to date knowledge on transport policies on both the local and global scale.

He noted that the transport sector in Kenya has undergone tremendous growth since independence and has grown to become a key component of Kenya's service sector.

In 2014 ecoconimc survey , the total output value from the transport sector expanded by 3.3 per cent in 2013 with road transport alone accounting for 64.3 per cent.