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Oil prices stay high despite State order

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By BARNABAS BII 
Posted  Sunday, March 21  2010 at  20:43

The cost of petroleum products remains high in most parts of Western Kenya despite a government directive to marketers to reduce oil prices.

Dealers in the region have increased fuel prices by between Sh3 and Sh4 per litre due to shortages. The move to lower the costs was announced after the government suspended a petroleum inspection contract that had been awarded to Geo-Chem Middle East of India.

This comes at a time when farmers in the North Rift region require large amounts of diesel for the on-going preparations for the planting season that kicks off with the rains.

According to Mr Hezekiah Kosgei, an independent oil dealer, the price of diesel has increased from Sh69 to Sh72 per litre while that of super is up from Sh82.50 to Sh84.50 for the same quantity.

He said the costs are likely to increase further unless the row between oil shippers and the government is resolved. “More filling stations are likely to experience fuel shortages and subject motorists to further suffering,” said Mr Kosgei.

A survey by the Nation indicated that farmers in Kitale, Moi’s Bridge and Matunda have been forced to suspend land preparation due to shortage of diesel.

Same fate

The situation is similar in parts of Uasin Gishu including Ziwa, Moiben and Sergoit where farmers are faced with the same fate.

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“The shortage is likely to delay land preparation exercise since we require sufficient supply of diesel to run our machinery,” said Mr Isaac Kibogy from Sergoit.

Oil marketers are required to pay the inspection fee before any fuel-loads are released for distribution.