ERC should stop serving oil traders

For several days motorists in Nairobi and other parts of the country have had to contend with a shortage of fuel.

The shortage was not as a result of the commodity missing from the Kenya Pipeline Company storage facilities in Mombasa and Nairobi but rather, an artificial shortage in anticipation of a hike in petrol prices that were eventually announced by the Energy Regulatory Commission (ERC) yesterday.

Unscrupulous petroleum dealers who had bought the commodity in bulk at lower prices last month hoped to maximise profits after getting wind of the fact that the regulator would revise prices upward.

Even though the ERC has warned traders against hoarding the commodity, it is apparent some of its workers surreptitiously collude with marketers and tip them off when prices are likely to go up.

ERC’s mandate includes regulation, tariffs setting and reviews, licencing and approval of power purchase. Its vision is to be a world class energy regulator that facilitates and enhances delivery of sustainable, robust and quality service.

Until recently when its commitment to improving the welfare of Kenyans was questioned, its tariff reviews kept spiralling upwards in favour of oil marketers. When prices of crude oil go down, ERC is reluctant to pass the benefits to the common man but act with alacrity only when prices go up.

ERC must invoke its powers and punish oil marketers who create artificial shortages to fleece motorists. It must act to end the perception that it serves at the behest of the oil multi-nationals.