Nairobi — Consumers have no cause to worry over continued supply of fuel due to the termination of KenolKobil's crude oil processing agreement by the Mombasa-based refinery, Energy Regulatory Commission (ERC) has said.

Other companies will fill the vacuum, it said.

"The gap will be filled as companies compete to increase market share and make a return on investment in a liberalised market," said ERC's petroleum director, Mr Peter Nduru.

He added that ERC is examining the circumstances that led to the termination of KenolKobil's crude oil processing agreement, after Kenya Petroleum Refineries Ltd (KPRL) referred the matter to the regulator.

Mr Nduru said due process provided by the Energy Act will be followed in dealing with the dispute of non-payment of processing fees, while KenolKobil will also be asked in writing for an explanation before a decision is made.

"It will take a bit of time to handle the KPRL and KenolKobil issue. Legal Notice No 197 of December 2, 2003 requires all licensed importers to process 1.6 million metric tonnes (MT) of crude oil at KPRL," he said.

KPRL is demanding Sh600 million in processing fees from KenolKobil while the latter has also lodged a counter-claim of over Sh2 billion which was revised to Sh4 billion for loss of business.