An attendant fuels a car at a Total petrol station. FILE PHOTO | NMG
Energy Regulatory Commission (ERC) ordered demolition of 24
petrol stations and closure of another six for adulteration or dumping
of export-bound products between July and September.
Nairobi
was the most affected with 13 petrol stations demolished and one case
of closure. Industrial Area recorded the highest number at eight. Others
were in Kyang’ombe, Kiamaiko, Huruma and Donholm.
The
stations either sold super petrol or diesel contaminated with kerosene
or petroleum products meant for export. The ERC said in a notice on
Friday that between July and September, it conducted 4,456 tests at 675
petroleum sites — including illegal ones.
“From the tests, 637 sites were compliant, which represents a
94.4 per cent compliance level. However, test from 38 sites turned out
to be non-compliant,” said the regulator.
In Mombasa, the ERC ordered demolition of four stations in Changamwe and two others in Ruiru, Kiambu.
Other towns affected include Embu (Makutano), Siaya (Madeya) and Nakuru (Salgaa).
The
ERC also closed fuel stations in Kangeta (Meru), Kodiaga (Siaya),
Mung’etho shopping centre (Nakuru), Homa Bay town and Ganga in Busia.
The
regulator fined four stations in Kisumu, Busia, Bomet and Migori
between Sh130,000 and Sh500,000 before it allowed them to resume
operations.
According to the Petroleum Institute of
East Africa, adulteration of petrol and diesel with kerosene creates
unfair competition among players engaged in legitimate trade. The
government loses about Sh3 billion due to tax evasion.
Last
week, the ERC raised the price of kerosene by Sh10.71 per litre
following the revision of value-added tax on fuel to eight per cent. The
government had earlier introduced a special anti-adulteration tax
charged at Sh18 per litre of kerosene, pushing retail price closer to
that of diesel to curtail rampant adulteration of petrol and diesel.
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