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Crack down on defiant greedy fuel retailers

Editorial logo Nation.Africa

By  Editorial

There was excitement when the Energy and Petroleum Regulatory Authority (Epra) announced reductions in fuel prices. This has been the best news in a long while for individuals, households, institutions and businesses battling the high cost of living.

High fuel prices naturally push up the prices of commodities and the cost of services, especially passenger and cargo transport. Epra announced the biggest drop in fuel prices in 19 months on Tuesday. A litre of petrol is retailing at Sh180.66, diesel at Sh168.06 and kerosene Sh151.39. The boon was realised after the landed cost of fuel dropped by between 5.5 and 8.6 per cent.

It is disappointing, therefore, that some retailers are spoiling the party for the would-be beneficiaries through high prices. The Energy and Petroleum Ministry has threatened to crack down on filling stations that continue to sell fuel at high margins despite lower the prices announced.

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Energy Cabinet Secretary Opiyo Wandayi has confirmed that some dealers are yet to lower pump prices despite the Epra adjustments that saw the prices of a litre of petrol, diesel, and kerosene drop by Sh8.18, Sh3.54, and Sh6.93, respectively. While it is commendable that the CS has sounded this warning, it would have been better to take immediate action as the violation is not in doubt. Consumers are being denied the benefit by greedy retailers before the next price review on November 14.

The price reduction was effected after Epra’s refusal to comply with a court directive to reverse the road maintenance levy from Sh25 to Sh18 per litre.

While it is in the interest of the retailers to profit from their investment, they should not be allowed to defy directives by the regulator, whose intervention ensures fairness for the long-suffering consumers. They should not be denied the gains from the lower prices.

To serve as a deterrent, Mr Wandayi should require the relevant agencies to take stern action against the retailers who have ignored the Epra directive on new pump prices.

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