Independent fuel dealers say motorists could still be faced with long queues or no petrol in some right into next as the shortage slowly eases.
This is despite the government’s allocation of Sh34.4 billion in the supplementary budget to clear outstanding fuel subsidy payments to Oil Marketing Companies.
Major players in the oil sector are said to be said to be hoarding new stocks, anticipating a price increase in next week’s monthly price review.
Independent dealers said they are yet to access the petroleum products as major players ration the little stock they have for their own franchisees.
The long queues of loading trucks at depots is another reason that will see pump stations remain dry for longer.
The oil marketers were expected to receive the payments by Tuesday yesterday, according to Petroleum PS Andrew Kamau.
However, stocks that have come into the country in the last two weeks are said to be held awaiting the new price review, which will be pegged on global crude that has averaged between $110 and $103 per barrel in the past two weeks.
This means fuel dealers are only selling the 199 million litres of petroleum products Kenya Pipeline said it was holding in its storage facilities countrywide as of April 2.
These includes 94 million litres of diesel, 69 million litres (petrol), 23 million litres (jet A1) and 13 million litres of kerosene.
The total amount is only 23 .2 per cent of the total KPC storage capacity of 858 million litres at Kipevu-Mombasa (326 million litres capacity), Kenya Petroleum and Refinery Limited (144 million litres storage capacity), Nairobi terminal (233 million litres capacity), JKIA (54 million), Eldoret (48 million), Kisumu (45 million) and Moi International Airport-Mombasa’s seven million litres storage capacity.
Industry data shows Kenya uses about 165.45 million litres of super petrol every month, 220.57 million litres for diesel and 11.26 million litres of kerosene.
There have been only three major deliveries of petrol diesel and kerosene at Mombasa in the past 11 days, the Kenya Ports Authority vessel schedule shows, with one jet fuel and one LPG vessel.
Marketers attributed the slow down on imports to cash-flow constraints .
Yesterday, Ola Energies’ Westlands (Nairobi) station had not received fuel by 11 am, a spot check by the Star show while the Shell Station on Waiyaki Way had a long queue of motorists and boda bodas.
Total Petrol Station along Thika Road was still capping sales of product at Sh2,000 per customer.
“The reason why we don't have fuel yet is because of the long queues at the depot. It is a restocking issue,” a manager at one of the leading OMCs told the Star in anonymity since he is not the firms authorised spokesperson.
Petroleum Outlets Association of Kenya (POAK) national coordinator, John Njogu said the major dealers with old stock are nor selling to the independents because it is not a lot
"We might still see that challenge until the prices are reviewed,” he said.
Njogu said the latest imports awaiting offloading in Mombasa stocks was shipped at higher prices based on global prices, hence importers will be forced to wait for the monthly review by the Energy and Petroleum Regulatory Authority(EPRA), which comes on the 14th of every month.
“They are sitting on the stock until the new prices are factored in,” Njogu said warning that with independent dealers lacking stocks, most parts of the country will still experience shortages as they mostly serve the small towns.
“No one wants to sale the old stock because they need it for their own stations and they can't sale you the new sock because they are not priced, so this problem might not end the way people expect,” he sad.
Independent producers sale between 1.5 million and 2 million litres of fuel products used in Nairobi daily.
There are about 1,200 licensed independent dealers country-wide, accounting for 45 per cent of products sold in the market, mainly in remote parts of the country and small towns where big players have minimal presence footing.
“We still don't have the product,” The Kenya Independent Petroleum Distributors Association chairman Joseph Karanja said.
Independent dealers are expected to meet ministry officials today, led by the PS petroleum, to find a solution to the continued shortage at their outlets.
The government has warned against hoarding, saying it is illegal.
Title: "WATCH: The biggest news in African Business"
