ERC shut down 27 petrol stations for selling fuel mixed with kerosene

What you need to know:

ERC says the stations were targeted for selling fuel mixed with kerosene or for diverting fuels meant for export to the local market.

Petroleum adulteration is the act mixing of diesel with kerosene or super petrol with kerosene to take advantage of the lower taxes on kerosene.

Most of the stations, seven, were closed down in Meru County, and five in Kakamega.

At least 27 petrol stations have been closed down across the country as the energy regulator cracked down on the sale of adulterated fuel.

The Energy Regulatory Commission (ERC) says the stations were targeted for selling fuel mixed with kerosene or for diverting fuels meant for export to the local market.

Diverting exports products into the local market leads to loss of revenue in unpaid taxes. On the other hand, mixing petrol with other fuels or adding impurities increases the risk of a car engine to knock.

Petroleum adulteration is the act mixing of diesel with kerosene or super petrol with kerosene to take advantage of the lower taxes on kerosene.

In a statement Monday, ERC Director-General Joe Ng’ang’a said the stations affected were among the 1,493 petroleum outlets whose products were tested for quality.

Most of the stations, seven, were closed down in Meru County, and five in Kakamega. More stations were shut down in Kirinyaga, Kericho, Migori, Siaya, Murang’a, Mombasa, Bomet, Kisumu, Kisii and Tharaka Nithi counties as of February 29.

However, Mr Ng’ang’a said the prevalence of adulterated fuels had gone down considerably.

He dispelled fears that most petrol stations served their clients with contaminated fuels. He said the commission would also enhance its surveillance to check unscrupulous dealers.

“As we have indicated, the measures the commission and other State agencies, largely security officials, have implemented to protect consumers from deceitful practices, are paying off,” Mr Ng’ang’a said.

The successes are as a result of the concerted efforts of county commissioners, who have been very vigilant against such practices in their areas of jurisdiction.

Data the energy regulator gathered between September 2015 and February 2016 indicates that 96 per cent of petroleum outlets sampled did not have contaminated fuels or stock fuel meant for export.

“A total of 8,945 tests were carried out in 1,493 petroleum outlets to single out traders who have not complied. At least 96.2 per cent of petroleum outlets tested had complied with only 56 stations recording non-compliance,” Mr Ng’ang’a said.

Non-compliant stations were ordered to pay taxes and penalties to the Kenya Revenue Authority and would also be required to purify their fuels before selling them.