The government has ordered One Petroleum Ltd to cancel all invoices it issued and refund the charges via credit notes, following concerns about a disputed fuel consignment of 60,000 Metric Tonnes (MT).
One Petroleum that imported the said product and invoiced Oil Marketing Companies.
The 60,000 metric tonnes consignment of Super Petrol was imported into the country in contravention of the procedures set out in the G-to-G contractual framework with international suppliers.
The vessels were reportedly allowed into the market after a separate consignment of 114.7 million liters of super petrol sourced from Emirates National Oil Company (Enoc) failed to leave the Port of Jebel Ali in Dubai due to the closure of the Strait of Hormuz.
One Petroleum Ordered to Immediately Withdraw All Invoices Issued and Raise Credit Notes
This consignment was priced at Ksh 198,000/MT , compared to Ksh 140,000/MT under the G-to-G arrangement.
It reflects an increase of Ksh 58,000 per metric tonne, which would result in an approximate rise of Ksh 14 per litre in pump prices on this consignment alone.
In a statement issued on Tuesday, April 7, Energy and Petroleum CS Opiyo Wandayi said the action posed a risk to the integrity of a system that has consistently safeguarded supply security and pricing stability.
The CS also directed One Petroleum to remove the 60,000 MT consignment of Super Petrol from Kenya as soon as possible.
Wandayi state that oil Marketing Companies should neither pay the invoices nor uplift product from this consignment;
The Energy and Petroleum Regulatory Authority(EPRA) was directed to subsequently exclude this product from the monthly computation of petroleum product costs.
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According to the Energy ministry, Kenya entered into master framework agreements on March 10, 2023 for the supply of super petrol, diesel and jet fuel/kerosene under a G-to-G arrangement with Aramco Trading, Fujairah FZE, ADNOC Global Trading Limited and Emirates National Oil Company (Singapore) Private Limited, anchored in the Petroleum (Importation) Regulations, 2023.
The ministry said the arrangement has supported steady supply of refined products locally and regionally, and helped protect foreign exchange stability, adding that it has also enhanced price stability and the integrity of product quality along the supply chain.
Wandayi stated the Government will remain vigilant to ensure that no individual, company or stakeholder engages in artificial shortages or unjustified price increases.
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“The Government reaffirms its firm commitment to upholding the integrity of fuel supply under the Government-negotiated G-to-G framework and to honouring its contractual obligations,” read the statement further.
“It also assures all stakeholders, both international and domestic, of its continued resolve to safeguard stability, transparency, and accountability in the petroleum supply chain.”
