EPRA or the Energy and Petroleum Regulatory Authority on Tuesday, June 9, issued a warning to hoarders of petroleum products in anticipation of an increase in prices with the monthly review.
In a notice on major newspapers the regulatory body noted that there were reports of an artificial shortage of petroleum products in the country despite the country being sufficiently stocked
“A number of Oil Marketing Companies (OMCs) are deliberately holding back sales to non-franchised petroleum retailers otherwise known as independents, in anticipation of a price increase.
“OMCs and petroleum retail station dealers are hereby warned that companies or individuals found to be deliberately holding back sales of petroleum products will be deemed to have hoarded, and shall on conviction be liable to a fine of not less than Ksh1 Million, or a term of imprisonment of not less than one year, or both,” read a section of the statement.
The government body noted that it would permanently revoke licenses for companies or individuals found in breach of the provisions.
The practice is tantamount to hoarding and is an offense under Section 99(1)(k) of the Petroleum Act No.2 of 2019 that recommends penalties for a hoarder who is the owner or operator of a bulk storage, facility for petroleum products, service station or storage depot, or being the owner of any petroleum stocks.
“Members of the public are hereby encouraged to immediately report any suspected instances of petroleum hoarding to EPRA through compliance@epra.go.ke or hotline numbers 0708 000 444,” the regulatory body advised.
It is a common trend for petroleum retailers to hoard the product closer to days when the prices of fuel are likely to be reviewed upwards.
With the higher prices come huge profits for traders holding significantly cheaper stocks.
In May 2020, EPRA announced a second drop in fuel prices with prices for Super Petrol and Diesel reduced by Ksh 9.54 and Ksh19.9 respectively while Kerosene was increased by Ksh2.49.
The current fule retail prices stand at Ksh 83.33, Ksh 75.86 and Ksh 79.77 for Super Petrol, Diesel and Kerosene respectively in Nairobi.
EPRA is mandated with the supervision and regulation of upstream petroleum operations including exploration, production, processing, transportation, storage, importation and sale of coal bed methane gas and other energy forms.
The enhanced duties are in accordance with the Energy Act 2019 and the Petroleum Act 2019, which were assented by President Uhuru Kenyatta in 2019.
