Fuel marketers call for higher pump prices

Fuel marketers are seeking to have higher fuel prices announced for the next one month to protect their profits, arguing that they still have as much as 40 per cent of stocks they had bought expensively before the price drop.

In a letter to Petroleum Cabinet Secretary John Munyes, the Oil Marketing Companies said the oil market saw reduced demand due to stay at home measures and curfews implemented in March.

The fuel marketers are calling on the government to engage the energy and petroleum regulatory authority to exclude the cheaper April cargo in the May-June price review to give them the grace period to sell the expensive inventory.

The letter reads in part “we write to register our concern with regard to the price exposure at hand once the May –June 2020 price review is implemented on the 15th of May 2020….the industry will have received two imports priced April whose cost is significantly low but at the same time still holding more expensive inventory that has not been sold”.

The Consumers Federation of Kenya condemned the move saying it goes to show OMCs are guided by greed rather than prevailing socio-economic and legal realities.

Cofek added “they want to maintain huge profits even as oil producers are literally paying dealers to evacuate oil as a result of low demand”.

Sentiments echoed by a section of Kenyans who reacted to the news online.

Mkenya Daima on Twitter said “not possible, you made your kill back then, it’s time to pay back.

Rodgers Kababa asked “When you hoard cheap stock and make consumers suffer, to who do they turn to?.

It remains to be seen in whose favour the price review will go once it is announced on Thursday.