Page 11 - AfrOil Week 14 2022

AfrOil PERFORMANCE AfrOil

Global oil prices also moved upwards last year, TotalEnergies, and increased business activities
supported by increased energy demand, he compared to 2020.
reported. This rise in global oil prices increased Fachini said the increase in working capital
fuel costs in Kenya, as well as working capital requirements emanating from increased oil
requirements for TotalEnergies Marketing, he prices led to a net financial loss of KES66mn,
explained. compared to a net profit of of KES86mn in
Meanwhile, the company also said its reve- 2020. He also stated that the company had seen
nues from diversified investments in shops, food its foreign exchange losses drop substantially
and service (SFS) and income from partnerships to KES56mn, down from KES144mn the year
with third parties had increased last year in com- before, “thanks to the proactive management of
parison to 2020. Additionally, it noted a rise in transactions in foreign currency and stability of
operating expenses attributable to rebranding the Kenya shilling against the US dollar in the
costs linked to the rollout of a new brand name, year.” ™

Kenya suffers fuel shortages after

government subsidies delayed

KENYA KENYA is facing an acute shortage of petroleum
products after the government delayed payment
of a KES13bn ($112.9mn) fuel subsidy to oil
marketing companies (OMCs).
Intermittent supply, especially in western
Kenya, reported since March 28, has adversely
affected non-franchised (independent) retail
outlets with franchises owned by multinationals
witnessing spiked demand. Prices for petrol and
diesel have risen to an average of KES160 and
KES155 per litre, respectively, with long queues
where supplies are available and hiked fares on
public transport.
Petroleum and Mining Principal Secretary
Andrew Kamau said the intermittent supply of
petroleum products was partly caused by the
delay in paying the subsidy. “The government
is set this week to remit compensation from the
petroleum stabilisation fund,” he said in a tele-
phone interview on April 4. The delay had led
to several OMCs holding back sales to the local
market. KPC says its fuel stocks are full enough to meet domestic demand (Photo: KPC)
Kenya Independent Petroleum Distribu-
tor Association (KIPENDA) Chairman Jack- stabilised pump prices. There have been delays
son Karanja said non-franchised outlets were in remitting compensation from the stabilisa-
adversely affected. “There was little loading in tion fund,” EPRA said in an April 2 press release.
the morning in depots of multinationals for As of noon on April 2, Kenya Pipeline Co.
delivery to branded retail stations. Independent (KPC) indicated in its stock report that it had
dealers in western Kenya are badly affected,” he more than 69mn litres of petrol, 94mn litres of
said. diesel,13mn litres of kerosene and 23mn litres
The Energy Petroleum Regulatory Authority of jet fuel available. “Our global stock holding is
(EPRA) said supply chain constraints caused by adequate to serve the region, with more ships in
changing dynamics at the global level post coro- Mombasa queued for discharge,” KPC’s Manag-
navirus (COVID -19) were worsened by the ing Director Macharia Irungu said.
ongoing Russia-Ukraine conflict. He said there are ample stocks of products in
Global petroleum product cost increases led KPC’s system throughout the country to meet
Kenya’s government to implement a petroleum demand. Kenya’s coastal Mombasa port handles
stabilisation mechanism to cushion consumers refined oil products for domestic use, and export
from high pump prices. “The recent escalation to Uganda, Rwanda, Burundi, northern Tanza-
in international prices has resulted in huge dif- nia, eastern Democratic Republic of Congo
ferences between the actual calculated and the (DRC) and South Sudan. ™

Week 14 06•April•2022 www. NEWSBASE .com P11