Motorists in Kenya endured one other day of gas shortages on Monday as Kenyan President Uhuru Kenyatta signed a supplementary finances for the fiscal 12 months which allotted a further 35 billion shillings (roughly €250 million) for the nation’s gas subsidy program, his workplace mentioned.
Whereas the Kenyan authorities blamed panic shopping for and hoarding, it mentioned it could pay gas subsidies to retailers this week to offset fears that shortages are on the horizon.
How dangerous are Kenya’s gas shortages?
The federal government announcement comes after a number of days of prolonged queues at filling stations, typically with limits on how a lot gas individuals should buy, if any is left in any respect.
One motorist within the capital Nairobi informed Reuters she needed to go to a number of petrol stations and was contemplating taking her firm’s fleet of automobiles off the highway consequently.
Evelyn Njenga, whose household operates a fleet of business pick-up vehicles, mentioned, “We’ll begin parking the vehicles at residence.”
What does the Kenyan authorities say?
The principal secretary within the petroleum and mining ministry Andrew Kamau mentioned the newest worth spikes have been inflicting money circulation difficulties for smaller gas merchants. Delays within the funds of subsidies, launched late final 12 months in response to quickly rising world gas costs, has additionally added to considerations.
Kamau mentioned the Kenyan authorities owes 36 billion shillings in subsidies, however that debt can be settled later this week.
The Power and Petroleum Regulatory Authority (EPRA) mentioned over the weekend that the federal government was working to settle its money owed.
The federal government has blamed hoarders, insisting it had sufficient petrol in reserve to provide the complete nation of just about 50 million.
Kenya Pipeline Firm mentioned on Saturday that state depots contained greater than 69 million liters (18 million gallons) of petrol and 94 million liters (25 million gallons) of diesel.
Authorities knowledge has concluded Kenyan shoppers use almost 400 million liters of petrol and diesel each month.
Kenya is reeling from a surge in crude oil costs since late final 12 months, forcing the nation to subsidize retail costs. The battle in Ukraine has accelerated this pre-existing drawback.
East Africa’s largest financial system unveiled a gas subsidy final April to assist prospects after worldwide oil markets have been roiled by instability.
Final week, Kenya’s central financial institution governor Patrick Njoroge mentioned, “Costs at $100 a barrel are utterly past the realm of understanding.”
ar/msh (AFP, Reuters)