- Nairobi has highest number of outlets hit by the crackdown on adulterated products.
Energy Regulatory Commission (ERC) ordered demolition of 24 petrol stations and closure of another six for adulteration or dumping of export-bound products between July and September.
Nairobi was the most affected with 13 petrol stations demolished and one case of closure. Industrial Area recorded the highest number at eight. Others were in Kyang’ombe, Kiamaiko, Huruma and Donholm.
The stations either sold super petrol or diesel contaminated with kerosene or petroleum products meant for export. The ERC said in a notice on Friday that between July and September, it conducted 4,456 tests at 675 petroleum sites — including illegal ones.
“From the tests, 637 sites were compliant, which represents a 94.4 per cent compliance level. However, test from 38 sites turned out to be non-compliant,” said the regulator.
In Mombasa, the ERC ordered demolition of four stations in Changamwe and two others in Ruiru, Kiambu.
Other towns affected include Embu (Makutano), Siaya (Madeya) and Nakuru (Salgaa).
The ERC also closed fuel stations in Kangeta (Meru), Kodiaga (Siaya), Mung’etho shopping centre (Nakuru), Homa Bay town and Ganga in Busia.
The regulator fined four stations in Kisumu, Busia, Bomet and Migori between Sh130,000 and Sh500,000 before it allowed them to resume operations.
According to the Petroleum Institute of East Africa, adulteration of petrol and diesel with kerosene creates unfair competition among players engaged in legitimate trade. The government loses about Sh3 billion due to tax evasion.
Last week, the ERC raised the price of kerosene by Sh10.71 per litre following the revision of value-added tax on fuel to eight per cent. The government had earlier introduced a special anti-adulteration tax charged at Sh18 per litre of kerosene, pushing retail price closer to that of diesel to curtail rampant adulteration of petrol and diesel.