In Summary
  • The compensation is meant to cover oil dealers for paying the taxman’s increments in road maintenance levy two years ago.

  • The Sh945 million compensation burden will see consumers pay an additional Sh0.69 per litre of petrol.

Consumers of petrol will from Thursday midnight start paying a Sh945 million compensation bill at the pump, after oil marketers incurred costs that were not passed on to customers.

The compensation is meant to cover oil dealers for paying the taxman’s increments in road maintenance levy two years ago.

The companies are also seeking to recover losses incurred when they convert imported super petrol cargo from tonnes, the international standard unit, to litres, at the pumps.

The Sh945 million compensation burden will see consumers pay an additional Sh0.69 per litre of petrol, excluding factors such as global crude prices and foreign exchange fluctuations. Diesel users will not be affected by the compensation costs.

The Energy Regulatory Commission is on Thursday set to announce new pump prices that will take effect from midnight and prevail until mid-next month when they will be reviewed again.

COMPENSATION

Consumers will pay the  compensation bill staggered over six months, starting midnight.

“The cost recovery is expected in subsequent months,” said ERC acting director-general Pavel Oimeke.

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