Kenya’s Energy Cabinet Secretary Charles Keter has warned that the government will cancel export licenses for companies involved in fuel adulteration. Speaking during a spot check on illegal fuel depots in Nakuru last week, Mr Keter said that the country had lost its regional market share to Tanzania due as a result of fuel adulteration.
Fuels that are contaminated by adding inferior quality ones are referred to as adulterated fuels. In Kenya, Fuel adulteration mainly involves adding kerosene or diesel to petrol.
Fuel adulteration is mainly carried out by oil marketers due to the low taxes charged on kerosene. As at June 2016, Kerosene had a Sh 7.205 per litre excise duty introduced to curb increased adulteration of the product which is mixed up with the more expensive diesel – in a move supported by downstream oil marketers.
The Ministry of Energy estimates that Kenya’s share of exports to regional markets has declined from 100% to 50% in Uganda, to 20% in Rwanda and marginally for exports destined to Southern Sudan. The CS promised that the government will continue with the operation on illegal depots in a bid to tame numerous complaints from the regional, individuals and corporate markets.
(Kenyan Wallstreet, The People Daily)
