An unexpected fuel shortage hit Western Kenya, the North Rift and many parts of rural Kenya mostly supplied by independent oil marketers.
The oil dealers blamed the shortage in the region on a mismatch in oil pricing coupled with fear of incurring losses as they need the government to assure them they will receive compensation in the next cycle of fuel prices review.
Eldoret Town and neighbouring towns in Uasin Gishu county and North Rift counties were among parts of rural Kenya hit by the severe fuel shortage, with petrol stations witnessing long queues of motorists since Sunday evening.
Dealers said wholesalers had stopped supplying them wary of government commitment to a State subsidy amid calls of assurance of compensation by wholesalers to enable them to release the fuel.
According to Mr Collins Boinett, one of the dealers in the region, the landing cost of fuel is Ksh 164 and wholesalers are jittery to shop the products, since the government is yet to commit to the subsidy.
“At the moment for instance in Eldoret, unleaded super goes for Sh135 and no dealer will sell the fuel beyond the recommended retail price. What the wholesalers want is just an assurance of the subsidy and the prices will be stabilized since there is no fuel shortage of fuel,” Collins Boinett.
In the February fuel price review, the Energy and Petroleum Regulatory Authority saved motorists from paying about Ksh.20 more on a litre of petrol due to the state subsidy that has kept pump prices unchanged for the fourth month in a row.
Without the subsidy, consumers would have paid Ksh.133.89 for a litre of diesel, Ksh.144.25 for a litre of petrol and Ksh.119.42 for kerosene.
In a statement, the Energy and Petroleum Regulatory Authority (Epra) engaged the oil marketers to resolve the crisis on Monday.
“We assure the public that there are enough fuel supplies in the country and that there should be no cause for panic,” said Epra without divulging details of the deal.
Officials at the energy regulator earlier reckoned that the Treasury would require at least Sh10 billion this month and another Sh15 billion in April to compensate oil marketers and keep local pump prices unchanged.
The levy cushions consumers from volatility in fuel prices but has also seen motorists lose out when paying the additional Ksh 5.40 for a litre at the pump.
