Nairobi, Kenya, April 14- Energy Cabinet Secretary Monica Juma now says show cause letters have been issued to Oil Retailers selling fuel above the prices stipulated in monthly reviews.
Speaking during a press conference on Thursday, Juma indicated that the Energy Petroleum and Regulatory Authority (EPRA) dispatched the letters following reports of motorists paying high prices for fuel which she indicated is available in large quantities.
She pointed out that Kenya has adequate stock, and some players are hoarding product on speculation ahead of price reviews.
“Energy and Petroleum Regulatory Authority (EPRA) has issued show cause letters to those OMCs that failed to meet the required minimum operational stock levels and thus resulted in stock outs at their respective retail stations,”she said.
Juma noted that the Energy (Minimum Operational Stock) regulations of 2008 require Oil Marketing Companies (OMCs) to maintain a specific stock requirement that guarantees the country security supply adding that it is a criminal offence not to maintain such stock.
She stated that some players were additionally diverting cargo earmarked for local use for export into the region to further enhance their abnormal profits.
Juma further warned that stern action will be taken against individuals companies found culpable.
The Energy CS sated that the Ministry of Petroleum and Mining has filed the requisite complains with the sector regulator, Competition Authority and the State Security agencies led by the Directorate of Criminal Investigations (DCI) for all Oil Marketing Companies that have contravened the law by engaging in acts of economic sabotage.
“Let me make it clear here that we are going to follow this process to its logical conclusion. Kenyans have come from tough times with COVID-19 are trying to recover from its ravages and we will not accept another layer of artificial constraints placed on them,” she stated.
To address the current situation, CS Juma said that the government had instituted a number of measures including sanctioning a process of reallocating the petroleum import capacity
She stated that OMCs which sold above their normal local quota during the crisis period will benefit from additional capacity, while those who sold less will have their respective capacity reduced.
“The rationalization of the petroleum import capacity sharing is aimed at creating a healthy balance between transit and local volumes,” she added.
Juma further pointed out that the government had also lifted the moratorium on transport of fuel from Nairobi depot by fuel tankers.
She further stated that they will privilege the movement of fuel and fuel products for the next 72 hours.
Juma stated that all fuel retailing outlets shall operate for 24 hours adding that their security will be assured.
