Government warns oil marketing companies against withholding fuel

The Government has directed all Oil Marketing Companies in the country to immediately release petroleum supplies to customers in order to alleviate the current supply crisis.

Amid long queues being witnessed at retail stations in most parts of the country, the energy and petroleum regulatory authority expressed concern that there has been an intermittent supply of petroleum products despite the fact that the country is sufficiently-stocked with fuel.

What’s even more worrying is the fact that fuel stations are trading the commodity at prices higher than recommended, and the authority is warning that anyone engaging in such activity will face the law.

“Oil Marketing Companies, depot and retail station operators are hereby cautioned that in accordance with Section 99(1)(k) and 99(1)(n) of the Petroleum Act 2019, it is an offense punishable by law to hoard petroleum or to sell above the published price.” the authority charged

EPRA attributed the decision by oil marketers to hoard fuel to the recent escalation in international prices, which it says has resulted in huge differences between the actual calculated and the stabilized pump prices.

The agency admits that there have also been delays in remitting compensation from the stabilization fund, resulting in a number of Oil Marketing Companies (OMCs) holding back sales to the local market.

But EPRA in conjunction with the Ministry of Petroleum and Mining disclosed that it has assured OMCs of the Government’s commitment to promptly settling all pending claims on account of the stabilization process and as such there should be no reason whatsoever to withhold fuel.

“EPRA will continue to keenly monitor the supply chain, engaging all concerned stakeholders and undertaking immediate interventions where necessary in order to ensure restoration of supply of petroleum in all parts of the country,” the regulator stated

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