New guidelines by the energy regulatory authority that came into force this month has capped the volumes and number of retail outlets each marketing firm.
Marketing firms starting this month (March) will be required to have at least 5 retail outlets or a storage deport or be able to sell at least 15 million liters of the various fuel grades each year before being granted import licenses.
Apart from petrol marketers also have the duty to ensure that over one million liters of diesel is in the pipeline from the earlier requirement of 500 cubic meters.
“Companies defaulting on both of these items for two consecutive months will have their licence downgraded for not less than one year. Kenya Pipeline Corporation will report on these two items monthly,” says ERC petroleum director Linus Gitonga
The regulations that were signed by energy cabinet secretary David Chirchir on December 19th are meant to stop the regulation in the petroleum industry.
Since the signing of the regulations the number of oil marketers have dropped by 15 percent from 67 to 57 in 3 months.
Already the ERC has issued the guidelines to marketers participating in the open tender system that has oil companies import monthly fuel requirements each month.
Marketers also have to comply with earlier agreements with the defunct Kenya petroleum refinery that has it demanded that they promptly lift products and transport fuel in the Kenya Petroleum Company channel.