EPRA Responds to Oil Marketers’ Complaints Over Wholesale Fuel Pricing

The Energy and Petroleum Regulatory Authority (EPRA) has responded to concerns by oil marketing companies over wholesale fuel pricing.

In a letter to chief executive officers of oil marketing companies (OMCs) on Tuesday, October 27, the regulator assured them that they will be compensated for excess fuel volumes accessed beyond those factored into current and subsequent pricing cycles.

EPRA said the compensation arrangement was intended to safeguard the country's fuel supply while addressing the financial exposure marketers face due to delays in adjusting prices to reflect changing costs.

"The Energy & Petroleum Regulatory Authority (EPRA) wishes to assure Oil Marketing Companies (OMCs) that where individual OMCs access volumes in excess of the volumes factored in the current and subsequent cycles, the excess volumes will be due for advance sales compensation. This is in a bid to ensure uninterrupted supply in the country and to compensate OMCs exposure to the price lag," the letter read.

Source: Nairobi Leo