7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, in the Ministry, we are actually blaming the oil companies for not taking fuel from the storage. There is enough fuel on our side.
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, to realize that stock you need to have adequate storage for the petroleum products. We also need to duplicate the pipeline from Mombasa to Nairobi. We are looking for financing for this. We expect the Line 1 – Mombasa to Nairobi – to be finalized by 2013. We are also asking the private sector to come in and build storage tanks. That is why we do not have the 90 days storage capacity.
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, that is a valid question. I mentioned earlier that petroleum products are booked in advance. The effect of the dollar drop will be realized this month.
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, that is actually why we are commissioning Line 4 – Nairobi-Nakuru – so that fuel can be picked in Nakuru instead of lorries congesting the joint depot in Nairobi.
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, we have requested all the oil companies which have stocks in our storage tanks to evacuate them as soon as possible, failing which they will be penalized.
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, petroleum prices were liberalized in 1994. What we are doing now is trying to put a cap on the price. We are not controlling the prices. We are saying that this is the maximum we can go. The formula we are using is an international formula, which is used everywhere. So, we cannot actually control the price of petroleum products. It is out of our hands. It depends on the international oil prices and the currency exchange rate fluctuations. If we, however, create the right environment for companies to compete properly by having proper infrastructure, that is ...
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7 Dec 2011 in National Assembly:
Mr. Speaker, Sir, that is a valid question. We will consult the Deputy Prime Minister and Minister for Finance and see what is possible.
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6 Dec 2011 in National Assembly:
Mr. Speaker, Sir, I beg to reply. The following are the causes of Liquefied Petroleum Gas (LPG) shortage in the country:- (i) During the month of September, 2011, the crude oil ship destined for Kenya Petroleum Refineries (KPRL) Limited arrived late. That delay reduced daily crude oil processing with an attendant drop in LPG production from 100 tonnes to about 60 tonnes a day. (ii) During the same month, an LPG ship arrived late due to rough tides off the coast of Mauritius. (iii) Another LPG ship arrived on schedule, but its LPG cargo did not meet the Kenyan specification ...
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6 Dec 2011 in National Assembly:
Those four factors substantially reduced the supply of LPG to the local market.
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6 Dec 2011 in National Assembly:
(b) Mr. Speaker, Sir, to address the current biting shortage, the following measures have been put in place:- (i) The defect on the LPG pipeline from KPRL to Shimanzi has been repaired, thus facilitating receipt of LPG in the limited storage facilities owned by oil marketing companies. (ii) Oil marketing companies with limited storage tanks at Shimanzi and Changamwe have agreed to arrange joint LPG imports. (iii) KPRL is expected to resume its normal crude oil processing throughput this week and production of LPG is expected to normalize at 100 tonnes daily. Mr. Speaker, Sir, the anticipated commissioning of the ...
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