Government Orders Fuel Release, Warns Against Hoarding Practices

The government has sent a clear message to oil marketing companies, directing them to deliver all withheld petroleum products immediately.

This is a clear indication of a tough stance taken by the government regarding all activities that might affect fuel distribution across the country.

The government was responding to increased anxiety among consumers regarding possible fuel shortages, as queues are now being witnessed in some parts of the country.

Officials now insist that such fears are unfounded and largely driven by artificial supply constraints created within the distribution chain.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi sought to reassure the public, stating that national fuel reserves remain stable.

He dismissed claims of an impending crisis and called on Kenyans to avoid panic buying, which he said could worsen the situation unnecessarily.

“On the matter of pricing, we shall address it when the time comes. For now, I urge Kenyans not to engage in panic buying. We have adequate stocks, and the government will ensure continued supply,” Wandayi said.

“We have noted with grave concern that some retailers are hoarding products with the intention of selling at higher prices. This is unacceptable, and we will take firm action against those found in violation,” he added.

Fuel Stocks and Supply Chain Status

The Cabinet Secretary maintained that Kenya’s petroleum supply chain remains stable and well-stocked.

According to official figures, the Kenya Pipeline Company is currently holding 102 million litres of petrol, 146 million litres of diesel, and 157 million litres of dual-purpose kerosene, including Jet A1.

In addition, Wandayi revealed that a diesel vessel is actively discharging fuel at the port of Mombasa, with more shipments expected to deliver approximately 288 million litres in the coming days.

“These stocks are sufficient to meet the national demand against our daily consumption,” he noted.

Also Read: Fuel Dealers Threaten Countrywide Shutdown Over EPRA Prices

Crackdown on Hoarding Firms

Wandayi warned that the government is closely monitoring oil marketing companies suspected of withholding fuel.

He directed all licensed operators to maintain regular supply and adhere strictly to prices set by the Energy and Petroleum Regulatory Authority (EPRA).

“This conduct is commercially opportunistic, contrary to the country’s interest and in direct breach of their legal obligations,” he said.

“They are aware of the conditions that come with their license. They should not engage in any unorthodox and unethical practices to take advantage of the crisis in the world. That would invite serious sanctions.”

Also Read: Africa Turns to Dangote Refinery as Iran War Strangles Global Fuel Supply

Global Tensions Fuel Local Concerns

The concerns over a potential shortage have been heightened by rising tensions in the Middle East, particularly around the Strait of Hormuz, an important shipping lane for global oil trade.

This channel reportedly experiences disruptions to global oil exports, which amount to about 20 percent of global exports during peacetime.

Despite these events, however, the Ministry of Petroleum and Mining reaffirmed that Kenya’s government-to-government agreements for fuel imports remain in place.

The main players in the agreements, including Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company, have not stated any disruption to the agreements.

The current import arrangement was established in 2023 with the aim of stabilizing fuel imports following previous shortages due to forex challenges and currency hoarding.

The current price adjustments will be communicated officially by EPRA, and Wandayi reassured citizens that an uninterrupted supply of fuel remains the top priority of the government.

He urged Kenyans to maintain their usual consumption habits while the authorities work on enforcing compliance.

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Energy and Petroleum CS Opiyo Wandayi
PHOTO/Ministry of Energy