Nairobi Star (Nairobi)
4 April 2011
Nairobi — REDUCED fuel prices were announced yesterday but at the same time many petrol stations ran out of fuel forcing motorists to queue for hours at the few stations that had stocks.
Oil industry players blamed each other for the shortages experienced over the last two days. Most stations only had diesel and quickly ran out of their petrol. Some SHell stations had the expensive Shell V-Power fuel available at Sh121 per litre.
The lower fuel prices came two weeks after the government reduced excise duty on petrol and diesel to cushion consumers against the high cost of fuel.
The Energy Regulatory Commission attributed the shortage to a distribution hitch between oil marketers and Kenya Pipeline Company.
However KPC denied that it had failed to supply the oil firms.
The new maximum pump price in Nairobi for kerosene will be Sh88.73 per litre while a litre of diesel will be Sh105.44. Consumers in Mandera will pay the highest with diesel at Sh117.96 per litre, kerosene at Sh101.25, regular at Sh120.68 and super at Sh123.69.
The lowest pump prices are in Mombasa with Super petrol at Sh107.92 per litre, diesel at Sh102.20, kerosene at Sh85.53 and regular at Sh104.92.
“The cost of importation is what has really changed among the three salient components of petroleum products prices which include crude oil prices, distribution costs and margins for the marketers,” said the ERC chairman Hindpal Singh.
KenolKobil admitted supply problems and said their stocks were running out very fast.
“It is mainly because of issues to do with storage allocation at Kenya Pipeline Company,” said Kenol Kobil’s public relations manager Charles Njogu. However KPC defended itself against the accusations and released a list of recent supply requests from oil marketers.
“We have fuel in Nairobi. As of this morning we have 17million liters.
They (oil companies) know the procedure. We only release fuel upon payment of taxes and KRA clearance,” KPC managing director Selest Kilinda told the Star.
According to KPC, Oil Libya yesterday requested 500,000 litres of Super, Oilcom 631,000 litres, KenolKobil 640,000 litres and National Oil Corporation an advance of 600,000 litres.
In Nairobi motorists were forced to drive to multiple petrol stations in search of fuel, particular Super.
Majority of the petrol stations in the city centre did not have fuel forcing motorists to drive as far as Mlolongo. Petrol stations along the major highways and arteries leading into the city from the suburbs had big signs announcing they did not have petrol.
The few stations that had Super petrol were quickly jammed by desperate motorists. Attendants at the Koinange Street and Belle Vuew Kobil petrol stations said attributed the queues to’panic buying’ by motorists.
“I drove around town for several hours I managed to finally fuel my car at Kobil on Koinange street where I found many other motorists queuing for fuel and it looked like it was also running out over there,” said John Gichonge.
No shortages were experienced in Mombasa. Attendants at Mombasa National Oil along Digo road said they had fuel but new stock only arrived on Sunday.
The Motorists Association of Kenya blamed the government for failing to protect consumers and allowing itself to be manipulated by oil marketers.
“We continue to lose billions of money due to a bad fuel policy. The promised decrease of Sh2 on diesel is yet to be reflected on billboards and pumps,” said the association.
In Eldoret, stations run by Total Kenya, Kenol and National Oil Corporation said they had so far not experienced shortages although consumptions was high as schools re-opened for the second term.
However some stations on the outskirts of Eldoret and Iten and Kapsabet reported shortages.
In Nyanza dealers in Kisumu, Kisii and other major towns warned that their fuel stocks will not last long long.
Matatus in areas such as Njoro, Gilgil, Salgaa and Eldama Ravine reported shortages but motorists in Nakuru did not experience any shortages.
AllAfrica – All the Time
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Prices Cut As Fuel Runs Out