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February 21, 2018

Petrol dealers threaten to sue ERC for being ignored in pricing

A sign post to a petrol station in Mombasa displaying pump prices. /FILE
A sign post to a petrol station in Mombasa displaying pump prices. /FILE

The Association of Petrol Station Dealers, Transporters and Wholesalers is has threatened to sue the Energy Regulatory Commission over fuel prices. The traders accused the ERC of only publishing retail pump prices and not wholesale prices as required by the 2010 Energy Regulations.

Association chairman Francis Wanyange said the fuel prices were determined without public participation as required in the Constitution. He said this has made traders to incur huge losses. Wanyage spoke in Naivasha at the weekend. “The commission has not published transport costs and delivery rates even though they are a key component of the retail pump prices in terms of Regulations 4 (a) and (b),” he said.

“As a result, wholesalers and transporters are eating into the mark-ups of the retailers, thereby reducing the maximum allowed margin for the retailer to uneconomic figures.” Wanyage said the association has written to the commission, but the response was “unsatisfactory and unhelpful”. Wanyange urged the commission to involve fuel traders in determining prices before publishing the price list.

He decried the rising cost of fuel, adding it is hurting the economy with the price of basic commodities rising by the day. Wanyange said the group may sue to force the ERC to follow the law.






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