Several oil marketing companies (OMCs) in Kenya are seeking a waiver on penalties imposed for storing petroleum products beyond the allowable period in the Kenya Pipeline Company (KPC) storage facilities.
According to Business Daily, the firms opine that logistical challenges and unforeseen delays have led to the overstaying of their products, resulting in substantial fines.
OMCs contend that factors such as port congestion, delays in product evacuation, and infrastructural constraints have contributed to the extended storage durations. These delays have not only disrupted supply chains but have also led to increased operational costs due to the accruing fines.
KPC, responsible for the storage and transportation of petroleum products, imposes fines on oil firms that exceed the stipulated storage time to ensure efficient utilization of its facilities.
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However, the OMCs are now appealing to the Energy and Petroleum Regulatory Authority (EPRA) to intervene and facilitate the waiver of these penalties, citing the exceptional circumstances that have led to the delays.
Industry stakeholders are now calling for collaborative efforts between the government, regulatory bodies, and the private sector to address the underlying infrastructural and logistical challenges.
Such collaboration is deemed essential to enhance the efficiency of the petroleum supply chain and prevent similar occurrences in the future.
