ERC fines 36 fuel stations over adulterated fuel sale

The Energy Regulatory Commission (ERC) has raised concern over the continued sale of adulterated fuel in the country.

Tests conducted between March and May found 36 fuel stations were culpable of selling diesel and super petrol products mixed with kerosene.

This is the second list published by the energy regulator since March as it steps up efforts to weed up the illegal practice in the country. Of the 36 fuel stations, five were found to be either illegal depots or fueling sites that have since been shut down.

The inspection also found that a number of the small oil marketers were diverting fuel meant for the export market.

The affected stations have paid penalties and fines ranging from Sh100,000 to Sh2,000,00, while the illegal sites have been closed down.

“Further, the defaulting operators are required to upgrade the adulterated petroleum where applicable and also pay penalties and taxes prescribed under the applicable tax laws before consideration for resumption of business,” reads a statement from ERC.

Unscrupulous businessmen have been taking advantage of lower taxes on kerosene, mixing it with diesel and super petrol to increase their earnings. This saw the government take action by reintroducing the excise duty on kerosene at a rate of Sh7,205 for every 1,000 liters, meaning Sh7.21 additional levy per liter.

ERC factored in the adjustment in its latest fuel price review which saw prices of kerosene retailing at Sh55.20 in Mombasa, Sh58.04 in Nairobi, Sh58.93 in Nakuru and Sh60 in Eldoret and Kisumu.

The energy regulator is empowered to publish a list of petroleum stations that have committed offenses such as sale of adulterated petroleum products or those earmarked for export in the local market.