An oil marketers lobby wants a firm that imported super petrol outside the Open Tender System (OTS) last month forced to foot demurrage costs incurred by other ships that were delayed following the disruptions.
The Oil Marketers Association of Kenya (OMAK) said the demurrage costs should not be passed on to taxpayers in the pricing schedule for the month to February 14 given that the ship came in as private cargo.
An oil marketers lobby wants a firm that imported super petrol outside the Open Tender System (OTS) last month forced to foot demurrage costs incurred by other ships that were delayed following the disruptions.
The Oil Marketers Association of Kenya (OMAK) said the demurrage costs should not be passed on to taxpayers in the pricing schedule for the month to February 14 given that the ship came in as private cargo.
MT Jag Prarena, a vessel loaded with 30,000 tonnes of super petrol was allowed to discharge despite not being in the berthing schedule last month leading to delays for other vessels that had been booked to offload fuel.
Demurrage costs — waiting for fees for delayed ships — form part of the landed cost of petroleum products that the Energy and Petroleum Regulatory Authority uses when calculating the monthly fuel prices, which it kept unchanged last Friday.
The costs partly contribute to the high pump prices, highlighting the adverse effects of the fuel shipped in, outside the OTS last month.
“It is, therefore, our position that this private cargo should not be considered in the pump price and subsequent compensation for stabilisation fund. The importer of this cargo should be held responsible for the resultant demurrage on the affected OTS cargoes,” said OMAK chair Abdi Ali in the letter last week.
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