Oil firms warned against hoarding petroleum supplies- EPRA

The Government has directed all Oil Marketing Companies (OMCs) to immediately release petroleum supplies, to ward off the ongoing fuel crisis.   

The Energy and Petroleum Regulatory Authority (EPRA) in a circular dated April 2, warned OMCs of sanctions against hoarding petroleum products.

“OMCs, depot, and retail station operators are hereby cautioned that in accordance with Section 99(1)(k) and 99(1)(n) of the Petroleum Act 2019, it is an offence punishable by law to hoard petroleum or to sell above the published price,” EPRA stated.

The Authority says it will remit Sh13 billion arrears owed to OMCs to aid the stabilization process.

EPRA said the increased pump prices stemmed from a global escalation in prices, resulting 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 OMCs holding back sales to the local market,” it said.

Fuel shortage has been reported at select petrol stations across the country this week. Retail outlets branded by major oil marketing companies have also seen a reduction in the amount of fuel they are supplied by the OMCs.

Motorists have had to queue for hours to be served and are forced to dig deeper into their pockets.

Parts of Nairobi, Central, Rift Valley, Nyanza, and Western regions have reported limited or low fuel, despite the Kenya Pipeline Company (KPC) dismissing the claims, saying that there is enough fuel to serve Kenyans.

EPRA also reiterated their statement adding that “the country is sufficiently stocked.”