NAIROBI, Kenya June 9 – The Energy Petroleum and Regulatory Authority (EPRA) has warned that some oil marketing companies and individuals are engaging in the hoarding of petroleum products in the country.
Despite the presence of sufficient stocks in the country, EPRA Director General Robert Oimeke said the activity has created artificial shortage in the country, especially in the Western part of the country.
“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,” he said through a statement.
A section of petroleum retail station dealers and oil marketing companies have developed a trend of holding back the sale of the products ahead of the fuel monthly review in order to accrue profits.
“This practice is tantamount to hoarding and is an offence under section 99(1) (K) of the Petroleum Act No. 2 of 2019,” he added.
Oimeke warned that any individual or company hoarding the petroleum products will be liable to a fine of not less than one million Kenya shillings or an imprisonment term of not less than a year.
“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 part of the statement.
Oimeke said the regulatory authority will also permanently revoke licenses for the companies breaching the provision further urging members of the public to report any suspected cases.
During the May monthly review, EPRA decreased the price of super petrol by Sh9.54, Diesel by Sh 19.19 and Kerosene price was increased by Sh 2.49 per liter.
Currently, the fuel prices retail at Sh 83.33, Sh 78.37 and Sh 79.69 for the Super Petrol, Diesel and Kerosene respectively.