Fuel Shortage Hits Nairobi for the Second Day Running

But the Energy Regulatory Commission on Monday said there is enough super petrol stocked in Mombasa.

The fuel stock-out curiously comes two days ahead of the announcement of this month's maximum pump prices.

Motorists took their frustrations online Monday and Tuesday morning over the shortage of super petrol in Nairobi and its environs.

Some motorists even blamed the situation on hoarding of fuel ahead of Thursday’s announcement of this month’s maximum pump prices by the Energy Regulatory Commission.

But according to ERC, the situation has particularly affected one large oil marketing company it declined to name, saying there are adequate stocks of super petrol in Mombasa.

ERC says it expects the situation to ease by today, Tuesday once more petrol is pumped to Nairobi.


Small oil marketers get upper hand

But in a statement to newsrooms, Vivo Energy Kenya, which runs the Shell-branded petrol stations network, has blamed the petrol shortage on what it sees as a disproportionate allocation of fuel storage space to oil marketers.

Vivo Energy, which won the tender to supply fuel last month, has said 44 percent of the storage space has been allotted to 67 oil marketing companies that account for only 3 percent of the retail fuel market.

This situation, it contends, gives the smaller oil marketers the upper hand when fuel stocks are running low.

Vivo Energy, which has a 20 percent share of the retail market, is among 8 oil marketing companies that have been allocated 56 percent of the fuel storage space in the country.

But sources within the oil industry say ERC is considering the introduction of a 2 million shillings penalty for poor stock management by oil marketers. 

The proposed amendment to the Energy Act will require oil marketers to have enough fuel stock to cover at least 15 days of their operations at any given time. 

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