Hard times ahead as Kenya faces looming fuel shortage

According to sources close to the major oil marketing companies in the country, the shortage has been occasioned by the fact that the government has not paid oil marketing companies fuel subsidy for the last four months forcing the oil marketers to import less fuel products.

In its February fuel price review, the Energy and Petroleum Regulatory Authority saved motorists from paying about Ksh.20 more on a litre of petrol due to the state subsidy that has kept pump prices unchanged for the fourth month in a row.

Without the subsidy, consumers would have paid Ksh.133.89 for a litre of diesel, Ksh.144.25 for a litre of petrol and Ksh.119.42 for kerosene.  

Further, due to the shortage, the main oil marketing companies responsible for importing fuel into the country are said to have snubbed non-franchised fuel stations on account of less product in the market.

The non-franchised fuel stations are responsible for supplying most parts of the country with fuel especially rural areas where the big oil marketing companies don’t have networks.

Data from the Energy and Petroleum regulatory authority show that Kenya uses 165.45 million litres of super petrol every month, 220.57 million litres for diesel and 11.26 million litres for kerosene.