ERC denies petrol shortage, warns against hoarding

The Energy Regulatory Commission (ERC) has warned oil marketers against hoarding fuel in anticipation of a rise in pump prices terming the move as illegal.

In a statement mailed to newsrooms, the commission said it had established that one oil firm was behind the shortage of super petrol being experienced in parts of the country.

“The Commission has received reports on the shortage of Super Petrol in some retail petrol stations in Nairobi and its environs.”

Without naming names, ERC accused one operator of causing the shortage.

“The Commission has since established that the situation affects one oil marketing company which, in the recent past, has expanded its retail network leading to increased sales volumes. In this regard, the Commission wishes to dispel speculation that the shortage is in any way connected to the petroleum pump price adjustment expected to be announced this week, the statement said.

ERC then moved to assure the public that the situation was being addressed and expected to resolve presently.

“Further, the Commission assures the public that the country has enough stocks of Super Petrol in Mombasa and all effort is being made to ensure that the product is pumped to Nairobi.  Consequently, we expect the situation to normalize in the next 24 hours.”

ERC also threatened dire consequences to companies found hoarding fuel.

“Finally, the Commission wishes to caution all oil marketing companies that hoarding of petroleum products in anticipation of an economic gain is illegal and any company found culpable of such an activity risks cancellation of their operating license.”