Gov’t Officials In UAE As Kenya Seeks To End Dominance By Big Oil Companies

April 27, 2022
2 Min Read
The government has opted to import fuel directly from the UAE on behalf of the National Oil Corporation of Kenya (NOCK) to facilitate supply to non-franchised retailers and help avert another fuel crisis.

Top Kenyan government officials have flown to the United Arab Emirates to negotiate for the State-owned NOCK to import fuel directly from the region.

This is a direct response to a looming crisis occasioned by oil marketing companies refusing to sell to franchised retailers.

This standoff is threatening to cause another round of punishing fuel shortages across the country just when the country was getting back to normal following a two-week fuel crisis in early April.

The UAE move will see NOCK import a substantial amount of fuel into the country and supply it to non-franchised fuel dealers and independent petrol stations.

Oil marketing companies are said to be only supplying fuel stations that they own on the grounds that they will incur losses should they sell to other retailers as a result of the government fuel subsidy.

As a result of the subsidy, which was implemented to cushion Kenyans from fast-rising fuel prices, OMCs are selling the commodity at near wholesale prices.

This, they say, makes it unprofitable to sell to independent players resulting in their decision to sell fuel in their own petrol stations.

The OMCs also claim they incurred higher import costs on the products which were not reflected in the recent price setting by the EPRA in the April monthly price review.

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