Fuel shortage crisis looms large
What you need to know:
- The Ministry of Energy and Petroleum Thursday wrote to the State-owned pipeline company directing it to suspend the implementation of the system to avert a wider supply crisis.
- Sources at the meeting said that concerns were raised over the reliability of the new system amid frequent power outages that have in the past been experienced in various parts of the country, and possible gaps in training of staff expected to implement and use the system.
- Mr Tanui, however, denied knowledge of any fuel stock outs resulting from implementation of the SAP system. The problem is said to have started on September 1.
The country might be hit by a fuel shortage after a new operations management system deployed by the Kenya Pipeline Company suffered hitches.
The system, known as SAP, is facing problems that have resulted in delays in loading fuel products to marketers’ depots, thereby causing stock outs in some retail outlets.
The Ministry of Energy and Petroleum Thursday wrote to the State-owned pipeline company directing it to suspend the implementation of the system to avert a wider supply crisis.
DEFER IMPLEMENTATION
“You may wish to note that stock outs have been reported in some retail outlets…The purpose of this letter, therefore, is to ask you to defer implementation of the SAP, CFA and TSA pending resolution of outstanding issues by the committee as agreed,” a letter signed by Energy Principal Secretary Joseph Njoroge reads.
The letter was copied to the Cabinet Secretary for Energy and Petroleum, all chief executive officers of oil marketing companies, the Energy Regulatory Commission and the pipeline coordinator.
Mr Njoroge said Kenya Pipeline Company had acted contrary to an earlier agreement that implementation of the system be done once all challenges associated with its adoption had been resolved.
According to sources in the industry, the agreement was made at a meeting between representatives of the Energy ministry, chief executives of oil marketing companies and the Kenya Pipeline Company at the Serena Hotel in Nairobi on August 26.
FREQUENT POWER OUTAGES
Sources at the meeting said that concerns were raised over the reliability of the new system amid frequent power outages that have in the past been experienced in various parts of the country, and possible gaps in training of staff expected to implement and use the system.
Vivo Energy — the company that markets Shell-branded products — said in a statement yesterday that some of its stations had run out of fuel, a situation that the firm blamed on implementation of the SAP system.
“As at September 11 morning, Vivo Energy Kenya was not able to load its stocks from Kenya Pipeline Company system and a number of its service stations have run out of fuel. Vivo Energy is appealing to KPC to quickly resolve the issue,” the statement read.
According to KPC managing director Charles Tanui, the new operations management system is meant to increase efficiency within the company as it allows oil marketers to place orders for fuel loading in advance which “enhances planning and scheduling of the pipeline.”
PROBLEM STARTED EARLIER
Mr Tanui, however, denied knowledge of any fuel stock outs resulting from implementation of the SAP system. The problem is said to have started on September 1.
“With the new system, marketers will be allowed to plan in advance, hence it will do away with global loading that is currently being practised.
‘‘We have not received complaints of any shortages that are associated with its implementation,” said Mr Tanui.
