A report represented to the Energy Regulatory Commission (ERC) has revealed that some oil companies have been hoarding fuel with an aim of prompting a shortage that will result into sharp rise in petroleum prices, sentiments that were echoed by the Parliamentary committee on Energy.

Some oil markers have also refused to lower fuel prices, claiming that they have old stock which was bought at a high price. They claim selling at the reduced prices would mean losses for them.

Eng. Kaburu Mwirichia, CEO, ERC has issued a stern warning to oil companies that have failed to lower their prices, stating that the commission will catch up with them and take them to court. Companies found guilty of having failed to lower their prices as directed by ERC shall be liable to a fine of up KES one million or the withdrawal of their operating license or both. Eng. Kaburu further added that excuses raised by oil marketers who claim they can’t lower prices due to having old stocks will not be entertained. He assured the public that ERC will do everything in its power to ensure that consumers are protected from unscrupulous dealers.

In accordance with the Legal Notice No. 196, The Energy (Petroleum Pricing) Regulations, 2012, ERC calculates the maximum retail pump prices of petroleum products. The fuel pricing regulations is framed in manner such that it cap’s the pump prices of the products which are already in the country, such that the importation and other prudently incurred costs are recovered while ensuring fair prices to the consumers.

The latest fuel price review has seen the price of super petrol drop by KES 9.21 to retail at KES 117.67 in Nairobi. The price of diesel and kerosene also drop by KES 8.01 and KES 8.8 respectively to retail at KES 97.50 and KES 74.40 respectively in Nairobi.