Kenya: This Oil Shortage is a Sign of Bad Planning

The only thing about the acrimony and finger-pointing among the key players in the oil industry that is not in doubt is that the country is experiencing a fuel crisis.

Fuel pump prices have shot up in the last few days even as shortages are reported in various parts of the country. And there are fears that we haven’t seen the worst yet.

Beyond these basic facts, Kenyans are at a loss as to who to believe between the Kenya Pipeline Company (KPC) and distributors.

..The simple truth is that KPC is ill-prepared for demand that has been increasing by leaps and bounds over the last three years. According to its own statistics, demand for petroleum products shot up from 790.6 million litres in 2002 to 902 million litres in 2004. There is little doubt that the demand has gone up considerably since.

This problem is being addressed, but evidently it is a case of too little, too late.

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