Skip to main content

Price Cap Pushes Dealers in Turkana Out of Oil Business

N

Nyakundi Report

Newsroom 2 min read

This archive report was first published on 19 August 2021.

On May 14, 2020, fuel pumps at a station in Nairobi reflected the struggles of petroleum dealers in Turkana County.

Since last year, dozens of petroleum dealers in Turkana County have closed their businesses due to high operating costs.

According to Moses Barasa, a petroleum retailer in Lodwar town, Turkana County, the petrol pricing formula fails to factor in the logistical nightmare and the cost of insecurity in the area.

Barasa, who owns Cinoc Oil Petrol Station, has been making daily losses from the sale of fuel at his station.

Since 2016, more than 40 fuel stations have shut down their operations in Turkana, citing unfair pump prices set by the Energy and Petroleum Regulatory Authority (Epra).

Association officials, including Mohamed Haji Ali, Secretary-General of the Turkana Fuel Proprietors Association, have called on Epra to reconsider the prices set for Turkana.

They argue that the current wholesale price of Sh112.64 and Sh131.85 for diesel and super petrol respectively per litre leaves them with a profit margin of less than Sh4 per litre to sustain their business.

Kenya National Chamber of Commerce and Industry Turkana Branch Chairman Pius Ewoton said they were in dialogue with Epra to address concerns raised by the fuel proprietors.

Epra manager in charge of the north-western region Francis Keri acknowledged the issue, but admitted that there were some delays to act due to the changes of management at the Nairobi office.

Be the first to react

Support

Support this reporting

M-Pesa support recorded against this story.

Send support →

Stay close

Get the briefing

Major updates by email. No spam.

Get email brief →

Share

Save share card

Download a clean portrait card for sharing.

Save image →