Domestic sales of petroleum products increased by 11 per cent in the financial year 2021/2022, latest energy sector data shows, as a rebound on economic activities fuel up demand.
The total domestic demand for imported refined products through the Open Tender System increased by 4.55 per cent per cent to 5.7 million cubic metres, The Energy and Petroleum Statistics report for the financial year ended June 30, 2022 indicates.
This was partly attributed to a 30.2 per cent increase in the demand for jet fuel as a result of the opening up of the economy and resumption of air travel across the world,” the report by the Energy and Petroleum Regulatory Authority (EPRA) states.
Sales during the period hit 5.2 million tonnes, attributed to the robust recovery of the economy in 2021.
During the period, Oil Marketing Companies (OMCs) imported at least 5.5 million cubic metres for local use, up 4.9 million cubic metres in the financial year 2020/2021.
There were 111 registered OMCs and approximately 4,373 retail stations in Kenya as at June 2022.
During the period under review, all economic sectors, except tourism, registered a rise in net domestic sales of petroleum products, EPRA notes, as the economy picked from the slow down witnessed at the height of the Covid-19 pandemic.
Vivo Energy, Total and Rubis continued to dominate the market with 23.8 per cent, 17.3 per cent and 10 per cent market share, respectively.
Other key players were Ola Energy, Oryx, Be Energy, Tosha Petroleum, Galana Oil, Hass Petroleum and Gapco.
Diesel, mainly used in the transport and agriculture activities remains the most consumed petroleum product with 2.7 million cubic metres sold during the year, followed by super petrol with an estimated consumption of 2.2 million cubic meters.
The agriculture sector was the biggest consumer of products during the year followed by retail pump outlets and road transport, air transport , power generation, industrial and commercial sectors and uptake by government.
Tourism, marine (excluding naval forces), and rail transport were also key consumers.
Fuel sales for power generation increased by 94.5 per cent to 147,500 tonnes.
Similarly, fuel sales for rail transport almost doubled from 11,400 tonnes in 2020 to 19,400 tonnes in 2021,”EPRA notes in its report.
Domestic sales to the aviation sector increased by 27.2 per cent to 499,400 tonnes while sales to the tourism sector decreased by 7.1 per cent to 6,000 tonnes in 2021.
Meanwhile, demand for Liquefied Petroleum Gas (LPG) has maintained an upward trend with consumption hitting 373,865 metric tonnes in 2021, a 13.9 per cent increase from the 320,909 metric tonnes recorded in 2020.
The total number of Bulk LPG storage facilities increased to 120 with a combined storage capacity of approximately 34,000 metric tonnes.
This is a significant increase from the eight facilities that were operational in 2012.
The facilities are distributed across 25 counties, which is a reflection of efforts made to improve LPG access to consumers.