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{
    "id": 1157772,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1157772/?format=api",
    "text_counter": 152,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon. Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": " Hon. Speaker, pursuant to the provisions of Standing Order 44(2)(c), I rise to request for a Statement from the Chairperson of the Departmental Committee on Energy, regarding fuel crisis/shortage across the country as a result of delayed subsidy payment to oil marketing companies. Hon. Speaker, the fuel crisis we are facing today dates back to September 2021. The Energy and Petroleum Regulatory Authority (EPRA) under Section 101(y) of the Petroleum Act No. 2 of 2019, Legal Notice No. 196 of 2010, and Legal Notice No. 26 of 2012, on 14th September 2021, issued the maximum wholesale and retail petroleum that was effective from 15th September to 14th October 2021. The drastic increase led to public outcry as maximum wholesale and retail petroleum prices significantly rose to historic high pump prices. One litre of super petrol went up to Ksh147.75 in Mandera; Ksh144.15 in Moyale Town; Ksh145.34 in Elwak Town; Ksh143.19 in Kibish Town; and, Ksh134.72 in Nairobi and its environs. Hon. Speaker, on 14th March 2022, EPRA increased the pump prices of petrol and diesel by Ksh5 per litre. Despite that, the Government maintained the margins of oil companies at zero meaning no profits for the companies. The cash flow for the Oil Marketing Companies (OMC) is seriously affected by incessant delays by the National Treasury to reimburse them under the subsidy programme thereby leading to hoarding the little fuel they still have in their reserves. EPRA blamed the delays in the disbursement of the fuel subsidy cash by the Ministry of Petroleum and the National Treasury. EPRA increased the pump prices of petrol and diesel by Ksh5 per litre on 14th March 2022. Despite the prices increase, the Government maintained the margins of oil companies at zero meaning no profits for the companies. The cash flow for the Oil Marketing Companies (OMC) is seriously affected by incessant delays by the National Treasury to reimburse them under the subsidy programme thereby leading to hoarding the little fuel they still have in their reservoirs. The Oil Marketing Companies (OMC) facing a cash crunch are bypassing Kenya's independent petroleum dealers by exporting their stock to Rwanda, Tanzania, Uganda, and the Democratic Republic of Congo (DRC), where they are guaranteed instant cash on sales. Hon. Speaker, it is on account of this background, that I seek a Statement from the Chairperson of the Departmental Committee on Energy on: (i) Could the Chairperson provide the total number of registered Oil Marketing Companies (OMC), petroleum dealers, and small oil dealers, their network distribution across the country, and percentage shares of the market in the country? (ii) Could the Chairperson provide the total amount of money collected under the Fuel Levy Fund from September 2021 to date? (iii) Could the Chairperson provide a breakdown of reimbursement of fuel levy fund per month from September 2021 to date and reimbursement due to be paid to the Oil Marketing Companies (OMC), petroleum dealers, and small oil dealers? (iv) Could the Chairperson explain the measures put in place by the Government to curb the fuel crisis in the country and also ensure that Kenyans are not affected as they are now in the streets and in all the petrol stations? The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}