What an oil industry insider unapologetically says of fuel hoarding

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When the Government introduced price controls on fuel we told them it will not benefit the consumer.

Since then prices have sky-rocketed.

The Government increased margins to the dealers and Kenya has one of the highest margins in the world.

It increased taxes and levies but through price controls continued to pass world prices to the consumer every 14th day of the month.

The Government cannot pretend to control pump prices because they can’t control world prices.

The Government with Oil Marketing Companies (OMCs) have maintained ullage allocation which was initiated when there were constraints in the pipeline and this is a sure way of creating barrier to entry and limiting competition that would otherwise reduce dealer margins and create efficiency in supply chain.

Today we are witnessing effect of price controls.¬†Because higher prices will be announced on 14th¬† April, OMCs will limit flow until new prices are announced. So why can’t EPRA announce now and stop the consumer suffering? What is so sacred on 14th day of the month?

In Uganda there are no price controls. No shortage. No queues.

All Government mourning and pleading with OMCs is nonsense.

The talk of strategic reserve is nonsense. We have enough fuel in system and will not flow out until prices are increased.

EPRA nonsense of auditing companies that exported to Uganda is missing the point.They chose between selling in Kenya at a loss versus selling Uganda at a profit and that is business.

We have crude in Lokichar as a strategic reserve of God to Kenya.

Government should license investors to put up modular refinery with Kenya Pipeline Company building pipeline to Uganda.

Modular refineries are working in Nigeria why don’t they go there to benchmark.

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