The Nation (Nairobi)

Kenya: Oil Marketers Cite Kebs Fee in New Price Rise

Nairobi — The cost of fuel on Friday went up as marketers claimed to pass on to consumers petroleum inspection fees being collected by the revenue authority on behalf of the Kenya Bureau of Standards.

Marketers said pump prices went up as the Kenya Revenue Authority insisted a fee of 0.675 per cent of cost, insurance and freight of crude oil and imported refined fuel must be paid before oil products are released.

A spot check by the Saturday Nation showed that prices had risen by an average of Sh1, with Shell adjusting upwards the cost of petrol to Sh89.90 a litre and that of diesel to Sh77.90 along Kenyatta Avenue in Nairobi.

Total increased the price of petrol to Sh89.70 a litre and diesel Sh79.20 along Koinange Street, while Kenol sold petrol for Sh89.30 and diesel Sh79.90 in the area. Kobil sold petrol for Sh89.90 and diesel Sh79.90.

Kebs in July 2009 contracted Geo Chem Middle East of India to carry out quality and quantity inspection of crude oil and imported refined fuel despite the Public Procurement Administrative Review Board having annulled the tender.

Officials of oil firms on Friday said the fee was being contested in the High Court but KRA started collecting it from March 1 after marketers were issued with a notice on February 25, 2010, by Customs commissioner Wambui Namu.


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