This archive report was first published on 10 June 2020.
Published on June 10, 2020, the Energy and Petroleum Regulatory Authority (EPRA) has accused oil marketing companies of cartel-like behavior in petroleum products, threatening them with financial penalties, jail terms, and revocation of licenses.
According to EPRA Director-General Pavel Oimeke, oil marketers have been hoarding fuel products in anticipation of higher prices when the government announces new prices on Sunday. This move could see Kenyans suffer as oil marketers make a pretty penny starting next week.
Commodity traders project that local pump prices could go up by as much as 16 per cent for diesel and kerosene, while super petrol will shoot up by 10 per cent. This follows an increase in the cost of crude oil due to demand growth attributed to economies reopening and an agreement among major oil producers to reduce production.
EPRA has warned that hoarding fuel products is an offence punishable by law, with a one-year jail term or Sh1 million fine. The regulator also said it would permanently revoke licenses of players found culpable.
“The country has sufficient petroleum stocks. However, preliminary investigations indicate that a number of oil marketing companies are deliberately holding back sales to non-franchised petroleum retailers (independents) in anticipation of a price increase,” said EPRA Director-General Pavel Oimeke.
Commodity traders are projecting that an increase of Sh14 per litre for kerosene, Sh12 for diesel, and Sh8 for super petrol. “Crude oil prices are not slowing down in the coming months. In May prices closed at $37 (Sh3,920) and had started may at $26 (Sh2,750). In the next couple of weeks, we will be seeing price going to over $50 (Sh5,300),” said Boris Chabeda, currency and commodities trader.
