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Kenya to set new rules on petroleum transportation

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Mr Kaburu  Mwirichia, CEO, Energy Regulatory Commission. Photo | Fredrick Onyango

Mr Kaburu Mwirichia, CEO, Energy Regulatory Commission. Photo | Fredrick Onyango 

By (Xinhua)

Posted  Friday, May 3  2013 at  14:45

Kenya's industry regulator, the Energy Regulatory Commission (ERC) said here on Thursday that it will set the legislative framework and regulation on transportation of petroleum.

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ERC's Director General Kaburu Mwirichia said the commission is working on a new regulation that was going to stream line bulk transportation of petroleum in the country.

"The commission is set to look into a new regulation to look into providing license to drivers transporting petroleum. Currently ERC only regulates transportation of LPG gas," Mwirichia told petroleum dealers in Nairobi.

The meeting which was in conjunction with other government agencies like the Kenya Revenue Authority, National Environment Management Authority and Kenya Bureau of Standards mainly targeted all Petrol Station dealers and owners in the country.

ERC's mandate encompasses economic, competition, technical and environmental regulation, a key aspect of economic regulation. One of the key functions of ERC is licensing of petroleum import, export, transport, storage, refining and sale.

The meeting's main objective is to raise the level of awareness with a view of increasing the level of compliance in the sector. The key issue is licensing requirement under the energy Act 2006.

Mwirichia said the Energy Act also grants the commission the power to issue, renew, modify, suspend or revoke licenses and permits for all undertakings and activities in the energy sector.

Without an appropriate regulatory environment being in place, several challenges face the oil sector which include proliferation of substandard petroleum dispensing and storage sites which pose environment health and safety risks.

At the workshop, ERC recommended coming up with a new regulation that is going to ensure adequate disposal of petroleum in the country.

Mwirichia said the ERC's key role in the industry is to protect consumers against the abuse of market power, ensure cost recovery and financial viability of sector players, and to implement government policy.(Xinhua)