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Oil Marketers Still Holding Excess Fuel Stocks For Export

Oil Marketing Companies (OMCs) are still holding excess fuel stocks for the export market, extending the prevailing fuel shortage crisis in the country.

In a letter sent out to the Chief Executive Officers of the OMCs on Tuesday, the Ministry of Petroleum Principal Secretary Andrew Kamau indicated that OMCs were holding 34 million litres of the excess transit volumes within the Kenya Pipeline Company (KPC) system.

“This is completely unacceptable,” PS Kamau told the marketers.

According to a list compiled by the Ministry, Asharami held the highest stock of excess transit volumes at 13.2 million litres ahead of Total Kenya, Lake Oil Limited, and Fossil Fuels Limited.

Other marketers flagged for the excess capacities include Oryx Energy, Stabex international, Galana Oil, Hass Energy and City Oil Petroleum Limited.

Leading marketers such as Vivo Energy and Rubis did not hold any excess stocks for exports and were in deficit of their export quotas.

The Ministry of Petroleum granted a window up to 6pm on Tuesday for marketers to offload the excess capacities to the local market.

Marketers failing to do so are to be barred from making fuel imports through the open tender system (OTS).

On April 14, the Ministry of Petroleum had asked oil marketers to ensure their quotas for the domestic and export markets are split at ratios of 60 to 40 per cent.

Oil marketers are allowed to store their export capacities within the KPC system for a period up to 30 days.

Some of the exporting OMCs have nevertheless been accused of breaching the 30-day window and clogging the supply chain to cause the prevailing intermittent fuel shortages in parts of the country.

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