News Agency of Nigeria (NAN)

Kenya: Petrol dealers to drag govt. to court


Kenya ERC

The Association of Petrol Station Dealers, Transporters and Wholesalers in Kenya threatened legal action against Energy Regulatory Commission (ERC)over wholesale prices of petroleum products in the country.

The association through its leaders, accused ERC of publishing retail pump prices but not wholesale prices as required by the law.

The association chairman Francis Wanyange said that the petrol prices were arrived at without any public participation as envisaged by the constitution.

Addressing the press in Naivasha,  Wanyange termed this as a failure by the commission leaving the traders to incur huge losses.

He noted that over the years commission had been publishing retail pump prices only and not wholesale prices which was against the energy regulations of 2010.

“The commission has not published transport costs and delivery rates although they are a key component of the retail pump prices in terms of Regulations 4 (a) and (b).

“ As a result the wholesalers and transporters are eating into the mark-ups of the retailers thereby reducing the maximum allowed margin for the retailer to uneconomic figures,” he said.

He said that the association had in the past written to the commission over the matter but the response given was unsatisfactory and unhelpful.

Wanyange demanded that the commission involve the fuel traders in future determination of prices before publication of the price list.