The untold story of fuel shortage

Drivers line up at a petrol station along Valley Road on May 3, 2011.

What you need to know:

  • Fear of reduced profits by oil marketing firms and State’s rush to reduce taxes without proper planning blamed for biting fuel shortage that nearly crippled life in Nairobi and other major towns across the country
  • Under the Open Tender System, small players, even those without petroleum retail outlets are allowed to import oil on behalf of other players, and they have ways of holding the products to manipulate prices

Fear of reduced profitability by oil marketing companies and the government’s rush to announce tax cuts on fuel without proper implementation plans are the main causes of the biting fuel shortage that hit Nairobi and other major towns last week.

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