This archive report was first published on 10 June 2020.
On June 8, 2020, the Energy and Petroleum Regulatory Authority (EPRA) issued a stern warning to fuel dealers who are hoarding petroleum products in anticipation of an increase in prices in a few days.
According to EPRA, there are reports of an artificial shortage of petroleum products in the country despite the country being sufficiently stocked.
"A number of Oil Marketing Companies (OMCs) are deliberately holding back sales to non-franchised petroleum retailers otherwise known as independents, in anticipation of a price increase," EPRA stated.
EPRA warned that companies or individuals found to be deliberately holding back sales of petroleum products will be deemed to have hoarded, and shall on conviction be liable to a fine of not less than Sh1 million, or a term of imprisonment of not less than one year, or both.
Additionally, EPRA stated that it would also permanently revoke licences for companies or individuals found in breach of the provisions.
The practice is tantamount to hoarding and is an offense under Section 99(1) (k) of the Petroleum Act No.2 of 2019 that recommends penalties for a hoarder who is the owner or operator of a bulk storage, facility for petroleum products, service station or storage depot, or being the owner of any petroleum stocks.
