Diesel scarcity hits contractors

Sep 02, 2005

OIL companies have cut fuel supply to some of their customers mostly contractors owing to new loading procedures instituted by the Kenya Revenue Authority (KRA).

By Hillary Kiirya
OIL companies have cut fuel supply to some of their customers mostly contractors owing to new loading procedures instituted by the Kenya Revenue Authority (KRA).
Some oil companies have cut the supply from 200,000 litres per month to as low as 10,000 litres while some have cut by half the usual supply. A source at one of the oil companies said by next week, there is likely to be a great diesel crisis.
Shell’s external affairs manager, Halima Besisira said, “We have been challenged with getting on with the new set up in Kenya. We have products loaded that side but because of the new procedures we cannot have it in time. This is causing shortage in supply.
“It is not a good situation for us and also not in our interest to have the shortages in any of the products. We are trying to have the situation contained,” she said.
Besisira did not, however, specify when the problem would be solved.
GAPCO’s general manager, Harkesh Manarao, said, The problem is with the new KRA procedures that have slowed the loading of trucks in Mombasa. We need to check with KRA otherwise there is likely to be a crisis.”
Kenya authorities recently changed rules on importation of oil. Under new rules, which started this month, oil dealers are required to pay taxes within a month of the release of the products from their refineries at Mombasa port.
Prices for fuel early last week shot up by sh100, pushing diesel from sh1,790 to sh1,890.
The increment followed a sh710 and sh450 tax increment on petrol and diesel announced for the 2005/06 budget.
by Finance minister Ezra Suruma.
Ends

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