The news that the Kenya Petroleum Refineries Limited (KPRL) could start importing its own crude oil for processing and sell it to the Kenyan and export markets, has no doubt led to collective sighs of relief from consumers and marketers alike.
If this proposal is adopted, marketers will now be free to buy products from both international players and the local refinery will become both a refiner and a seller.
Energy Permanent Secretary Patrick Nyoike hinted that KPRL could start importing its own crude oil for selling to the Kenyan and regional export markets.
But the Ministry of Energy (MoE) does not exactly inspire the confidence of Kenyans these days. This is what Mr. Nyoike told local reporters:
“The position of the Government is that the refinery is not performing and this is impacting on the supply chain. The game plan has to change,”
He then went on to blame last week’s shortage on the facility.
When exactly did this light bulb moment descend onto MoE’s (thick?) heads? Did Mr Nyoike expect Kenyans to believe that the Government (or indeed he as the P.S) had no idea of the massive inefficiencies at KPRL?
Oil marketers have been complaining for many years about it. Why does the Government acknowledge this now? Is it because they fear Uganda style food riots?
And haven’t we had it with MoE’s contradictory statements? One week they tell us that there is no shortage of fuel, then the next they go about blaming KPRL for the shortage, as if they don’t have any major stake in the company. Essar’s management has also been found wanting. Their assertion that they hadn’t planned for Uganda’s oil discovery is astonishing.
Oil marketers are required by law to process a huge amount of monthly demand at the refinery, though importing refined products would be much cheaper. Opening the market would mean that the refinery will have to compete with other international refineries and this will eventually make it to become more efficient and competitive as oil marketers will now be free to buy products from both international players and the local refinery. KPRL will thus become both a refiner and a seller.
The first time the idea of upgrading the refinery was mooted was nearly 3 decades ago. If it were the wish of the oil cartels fleecing Kenyans, the refinery would probably remain in its current state for another 3 decades, if not eternity.
A few days ago the Government ordered an emergency supply of super petrol despite the Kenya Pipeline Company (KPC) insisting it had sufficient stocks.
Faceless companies still continue to win tenders to deliver fuel consignments to the company. When they fail to do so in time, there are no repercussions.
The Government recently resorted to tactics such as removing all taxes on kerosene in order to cushion low-income families from inflation, which recently hit double digits after an acute shortage of fuel.
My bet, this won’t be the last time the Oil Circus will be coming to town.
Campaign money fund raising.
ReplyDeleteAnonymous. Tumewazoea. Blatant corruption is the norm.
ReplyDeleteWho is Nyoike fooling.
ReplyDeleteLet him come out and say when their campaign money target will be achieved and how many months we should give him, so that kenyans will know by then their woes will be over.
Anonymous, what you said couldn't be put better by anyone. Wakenya si wajinga!
ReplyDelete