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Oil dealers in surprise turn to support price controls

A Total petrol station. FILE PHOTO | NMG
A Total petrol station. FILE PHOTO | NMG 

Oil marketers have asked the government to retain price controls on fuel in a surprise move that looks set to delay efforts to open up the industry for competition.

The companies, represented by the Petroleum Institute of East Africa (PIEA), have apparently swapped positions with the government which seven years ago introduced the price caps in an effort to tame exploitation of consumers.

Under the caps, the Energy Regulatory Commission (ERC) reviews pump prices every month based on fluctuations in global crude oil prices, freight costs, the forex market and tax changes.

The oil marketers say the controls have worked for them, making their revenues predictable.

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