Petrol pumps dry up after prices are cut

A major petrol shortage has hit parts of the country only days after the energy regulator announced a Sh7 price drop per litre.

Motorists in Nairobi, Kisumu, Nyeri and Nakuru had to endure long queues at the few stations with popular brands.

Police officers were deployed at some stations with fuel to control traffic movement.

Some sources said the crisis was artificial and was being caused by retailers in a bid to push prices up. Many stations in Nairobi have not had fuel since Sunday when the new prices were effected, a Nation spot check showed.

But the Energy Regulatory Commission said supply was expected to normalise on Monday evening in Nairobi and its environs.

It attributed the shortage to unforeseen demand increase occasioned by the announcement of the new pricing schedule.

“Investigations by ERC confirm that the fuel shortage is not in any way attributable to market manipulation by oil marketers as earlier alleged in sections of the media. All leading oil marketers have today proceeded to lift respective products for onward delivery to their outlets today,” the director general, Mr Kaburu Mwirichia, said in a statement.

The commission, he said, had toured a number of depots to assess the situation.

The maximum price of super petrol in Nairobi decreased by Sh7.11 per litre, that of diesel decreased by Sh3.08 per litre while that of kerosene decreased by Sh3.63.

At one petrol station in Starehe, diesel, which was the only available fuel, was retailing at the old price of Sh110 per litre, with an attendant saying that they were still selling the old stock.

“The stock being sold now will not last for long, but we are now adjusting our prices downwards,” the attendant, who cannot be named as he is not authorised to speak to the press, said.

Whereas some attendants blamed delays in the delivery of oil products to their stations for the shortage, others said they were under instructions to tell motorists there was no fuel even when they were not experiencing any shortages.

Some indicated that the low prices would hurt their profit margins in case they continued selling the old stock at the new prices set by the energy regulator.

“We have been told several times that fuel will be delivered but we are still waiting,” a Kenol Kobil attendant said.

Oil companies have, however, said there is no fuel shortage and that they have already made orders to be supplied with the oil products.

Total Kenya communications manager Maurice Kanjejo said many retailers had placed orders at Kenya Pipeline and this had resulted in delays in discharging the fuel to the market.

“The ordering process is a straightforward thing. But, if a lot of dealers order on Tuesday, they probably have to wait maybe until Wednesday before they are cleared,” Mr Kanjejo said.

Shell country manager Jimmy Mugerwa blamed the shortage on logistical problems as many dealers placed their orders Monday morning.