Fuel crisis to end in two days, Gov't assures
By Judy Jerono
Petroleum and Mining Principal Secretary Andrew Kamau has said that the ongoing looming fuel crisis across the country will end on Wednesday, April 6.
PS said that the government will ensure that it settles the Ksh13 billion arears owed to oil marketers.
Speaking in an interview, the PS says the fuel shortage was caused by the delay in the subsidy payout which led to oil marketers running out of cash flow, a situation that curtailed the supply and distribution of fuel across the country adding that the high market price for the crucial commodity locked out small-scale oil marketers.
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File image of Petroleum and Mining Principal Secretary Andrew Kamau. |Photo| Courtesy|nya[/caption]
He said the situation in the country led to the giant players having to cope with the rise in demand from motorists as some stations suspended operations because of the shortage.
"This thing is a classic run, it's the same if all of you go to the bank in order to withdraw, they don't have the money sitting there.
"It's the same thing with petrol stations, you have to get it from the tank to the petrol station. What has happened is that the high import price is causing some of these small players to incur cash flow issues” Kamau said in an interview.
"Looking at how the supply pattern works in Kenya, it's rare that you would find cars filling their tanks to the brim but nowadays you find all motorists requesting a full tank,” he added
The PS also explained the vital role the government played by the in shielding Kenyans from the surging prices.
"The pricing cycle is from the 9th of the previous month to the 10th of the pricing month. Once that is done, EPRA sends to us the calculation of what the difference is between the actual price and the price that the government provides to Kenyans. An audit also has to be conducted in order to verify the amount we're paying," he added.
Previously, EPRA noted that the shortage to the delay in compensating margins to Oil Marketing Companies led to hoarding of the commodity.
The shortage of the now rare commodity in the Country has led to some of the matatu operators withdrawing vehicles from the road.
File image of Petroleum and Mining Principal Secretary Andrew Kamau. |Photo| Courtesy|nya[/caption]
He said the situation in the country led to the giant players having to cope with the rise in demand from motorists as some stations suspended operations because of the shortage.
"This thing is a classic run, it's the same if all of you go to the bank in order to withdraw, they don't have the money sitting there.
"It's the same thing with petrol stations, you have to get it from the tank to the petrol station. What has happened is that the high import price is causing some of these small players to incur cash flow issues” Kamau said in an interview.
"Looking at how the supply pattern works in Kenya, it's rare that you would find cars filling their tanks to the brim but nowadays you find all motorists requesting a full tank,” he added
The PS also explained the vital role the government played by the in shielding Kenyans from the surging prices.
"The pricing cycle is from the 9th of the previous month to the 10th of the pricing month. Once that is done, EPRA sends to us the calculation of what the difference is between the actual price and the price that the government provides to Kenyans. An audit also has to be conducted in order to verify the amount we're paying," he added.
Previously, EPRA noted that the shortage to the delay in compensating margins to Oil Marketing Companies led to hoarding of the commodity.
The shortage of the now rare commodity in the Country has led to some of the matatu operators withdrawing vehicles from the road. What's Your Reaction?
