Gov’t Responds To Kenyans’ Fuel Shortage Concerns Amidst Middle East War
The Ministry of Energy and Petroleum has assured that the country has enough petrol reserves, dismissing concerns of a fuel crisis in the country.
In a statement sent to Belgut MP Nelson Koech during a live interview on Monday, March 23, the State Department for Petroleum Principal Secretary Mohamed Liban confirmed that the government had enough petrol reserves to sufficiently serve the country for several days despite ongoing concerns.
According to the statement, the fuel shortage, which has been experienced in some parts of the country, was primarily caused by hoarding of fuel by oil marketers who are anticipating a shortage due to the ongoing conflict in the Middle East.
“We have sufficient stock in the country, and we had an operational issue with super petrol,” the statement from the PS read.
“In the run-up to the weekend, we have seen daily rise in petrol prices over the last two weeks because of speculation and panic buying.”
Amid concerns and a spate of panic buying experienced in the country over the past week, the PS assured that the Energy and Petroleum Regulatory Authority (EPRA) was actively dealing with the situation to ensure that oil marketers resume the normal supply of petrol.
Liban also confirmed that the country has received more than 100 million litres of super petrol as of Thursday, March 19, which is expected to last for the next two weeks.
The statement went on, “The EPRA is currently dealing with hoarding by oil markets due to the anticipation of price jumps.
“On the supply, many oil marketers who were lean on Thursday could have exacerbated the situation, 101 million litres of super petrol hit the system, and for more than 10 days’, consumption is expected to ease the situation.”
The ongoing conflict involving the United States, Israel, and Iran has heightened concerns over global energy security, as tensions and attacks in the Middle East threaten key oil and gas production and shipping routes
The attacks in the region led to Iran partially closing the Strait of Hormuz, a maritime passage through which more than 20 per cent of global crude oil and liquefied natural gas flows.
In a statement on Saturday, U.S. President Donald Trump threatened to attack Iran’s power plants if the Strait of Hormuz is not fully reopened by Monday evening.
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In response, Iran threatened to completely close this passage and launch retaliatory attacks on key energy infrastructure in Israel if the US attacks its power plants.
Kenya is heavily exposed to global shocks, like what is happening in the Middle East, since the country imports nearly all of its refined petroleum products.
In the latest review, covering March 15 to April 14, EPRA maintained fuel prices amid tensions.
This was mainly because most of the shipments were February-priced cargoes, meaning that the ongoing situation in the Middle East had not yet impacted the current fuel prices.
Gov’t Responds To Kenyans’ Fuel Shortage Concerns Amidst Middle East War
