The Energy and Petroleum Regulatory Authority (EPRA) has announced plans to reduce import allocations for Oil Marketing Companies (OMCs) found to have increased their exports to regional markets in the past four weeks, subjecting Kenyans to a shortage of the commodity.
EPRA Director-General Daniel Kiptoo says the oil marketers who increased their exports in the period under review will be allocated lower capacity for the next three import cycles.
On the flipside, OMCs who released more fuel into the market during the period will have their quotas increased. This will be in effect over the next three months.
The marketers are said to have increased the share of fuel they sell to the neighbouring countries of Uganda, Rwanda and DR Congo to over 60% from the previous 40% of total imports to ease their cash crunch. This has further cut supply as the neighbouring countries enjoy normalcy.
The oil marketing companies are accused of hoarding fuel so as to prompt the government to release the remaining KSh24 billion owed to them.
This is after the State released KSh8 billion to the oil marketers last week as part of the more than KSh30 billion fuel subsidy arrears owed to them.
The oil firms are accusing the government of withholding fuel subsidy cash that has accrued for four months.
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