NAIROBI, Kenya April 28-The Ministry of Energy has directed Oil Marketing Companies(OMCs) with higher transit stocks than the prescribed ratio to localize the excess stocks as it seeks to cater for the additional demand for fuel in the country.
Energy Cabinet Secretary Monica Juma said Wednesday that she had directed all pumpable petroleum stock within the Kenya Pipeline Company(KPC) system to adhere to the 60:40 local to transit ratio while supplying the product.
Juma indicated that the move has been informed by reports of concerns about a possible shortage of petroleum in some parts of the country.
“The Ministry has established a spiking petroleum demand, especially in Western Kenya. This demand is being driven by the preference of transit customers to fuel in Kenya owing to the price differential with neighboring countries,” Juma said.
She pointed out that the decision was reached following an emergency meeting with Oil Marketing Companies and representatives of Independent Petroleum dealers which sought to establish the causative factors and agree on a way forward.
To cater for this additional demand, Juma stated that the whole parcel of Super Petrol aboard MT Campo Square vessel (133.509 million litres) will be dedicated to the local market.
The vessel is expected to berth on April 30.
She further said that the whole parcel of diesel aboard another vessel MT Elka Athina (104.748 million litres) expected to berth on May 12 will also be dedicated to the local market.
The Energy CS assured Kenyans that on Wednesday the local petroleum stock at KPC indicated a cover of 17 days for Super Petrol (97.3 million litres) and 12 days for diesel (77.8 million litres).
She went on to say that to ensure sufficient supply, KPC will continue its petroleum loading operations throughout the oncoming long weekend pointing out that they do not foresee a challenge or interrupted supply.
“The Ministry of Petroleum will continue its close surveillance of the supply chain to ensure the security of petroleum supply in the country. In this regard, we commend the position conveyed to the country by the Petroleum Outlets Association of Kenya (POAK) following our meeting and agreed way forward to avert any challenge,” she stated.
She reiterated that the government is committed to ensuring that independent dealers access petroleum products across the country in good time and at the right price.
The Wednesday meeting is on the back of the Ministry’s lamentations of the continued overstocking of transit supplies by OMCs at the expense of the local market.
In a letter to the OMC CEOs, Petroleum Principal Secretary Andrew Kamau warned that OMCs with excess transit supplies risk being blacklisted from the open tender system (OTS) used in the procurement of fuel imports by marketers.
Some of the OMCs aked to localise quantity include Total Kenya, Vivo Energy (Shell), Rubis, Lake Oil, Oilcom Kenya, Ola Energy, Hass Petroleum and Petrol.
