Special kits to help motorists check for fuel contamination

What you need to know:

ERC has prepared regulations that fine offenders and provide testing kits to dealers.

Motorists will be provided with special kits to test the quality of fuel at the pump station as rogue traders increasingly mix kerosene with diesel in search for higher margins.

The Energy Regulatory Commission (ERC) is preparing regulations that propose that motorists be provided with the kits at a subsidised price of between Sh200-Sh500.

The Petroleum Institute of East Africa (PIEA) — the oil dealers’ lobby — says the rising prices of diesel and petrol have resulted in an increase in contamination of the two products by the cheaper kerosene.

The quest for instant testing is in response to calls by oil marketers for the reinstatement of taxes on kerosene, which were removed to cushion poor households that use the fuel for cooking and lighting.

“We have the instant test measures included in the Products Quality Management Regulations 2014, which shall be handed over next week to the Energy and Petroleum Cabinet secretary for assent and publication,” Linus Gitonga, the ERC director of petroleum, told the Business Daily.

“We want a scenario where consumers or dealers can do instant tests on the products bought or intended for purchase.”

This system has worked in India over the past decade in the fight against adulterated fuel.

In India, oil dealers are required to dye kerosene with an imported marker that helps detect mixing of petrol and diesel with kerosene. The doped kerosene turns the mixed fuel pink when tested using a simple kit.

In Kenya, the new regulations will demand that the industry marks all kerosene meant for local consumption and petrol destined for export.

Offenders will face a fine of Sh5,000 for each day their products remained non-compliant and Sh1 million for refusing to have them marked.

Those offering sub-standard products will also be charged Sh1 million. The present law only provides for a fine of Sh500 each day an offence continues.

“The regulations provide for suspension from operations by way of sealing of tanks for all non-compliant sites and road tankers until such a time that the commission is satisfied that the subject operators have paid fines and penalties to KRA,” ERC said.

PIEA reckons that nearly 80 per cent of kerosene is used for adulteration in petrol and diesel due to the huge price difference.

Petrol currently retails at Sh114.73 in Nairobi, diesel sells at Sh104.71 while kerosene sells at Sh82.81.

This is mainly due to the different taxes given that petrol has an excise duty of Sh19.89 a litre while the levy on diesel stands at Sh8.24.

Diesel and petrol also attract a road levy charge of Sh9 a litre that is not applied on kerosene.

This has seen some traders mix kerosene with diesel and petrol to enjoy higher margins in a market where the price of fuel products are controlled by the ERC.

Fuel adulteration leads to economic losses and large scale deterioration in performance of engines.