The Energy and Petroleum Regulatory Authority has cautioned Oil Marketing Companies (OMCs) against hoarding to create artificial shortages. EPRA warns OMCs and petroleum retail stations that hoarding will result in a fine of over KSh 1 million and possible jail term.
EPRA warns of the following consequences for individuals or companies convicted for hoarding:
- •A fine of not less than one million Kenya Shillings,
- •A jail term of not less than one year, with or without the fine.
- •Permanent revocation of their licenses.
A statement by EPRA reveals that oil marketers are holding back sales to independent retailers in anticipation of a price increase. The move is especially rampant in Western Kenya, where there are reports of artificial shortages.
Speculations of increases in oil prices in the country hold merit, given the uptick in global prices. Last Saturday, an announcement of the extension of output cuts by OPEC+ drove oil prices past the $40 mark, its highest price for the past three months.
SEE ALSO: OPEC & Allies Agree to Extend Oil Cuts By One Month
In April, crude oil prices fell to $17.64 per barrel, leading to a drop in Kenya’s petrol prices for May by KSh 9.54 to KSh 83.33 per liter. Similarly, Diesel prices fell by KSh 19.19 to KSh 78.37 in Nairobi. However, Oil marketers called for higher prices, claiming that they held expensive inventory from the previous months.
READ ALSO: Relief at Fuel Pump For Struggling Households
