The hardest hit are boda boda riders who have increased passenger prices [Photo/businessdailyafrica.com]
Middlemen in Lamu are selling a litre of petrol at Sh260 following an acute shortage of the product. The shortage has his Mpeketoni town in Lamu West Sub County.
Ordinary dealers said they have suspended selling fuel because the cost caps set by the energy regulator have pushed them into loses.
The development has forced middlemen who are not under the Energy Regulatory Commission (ERC) watch to sell the petroleum product at between Sh200 and Sh260.
ERC has since 2010 been setting the price of diesel, petrol and kerosene. The prices are set for each region monthly.
Presently, a litre of petrol is supposed to be trading at Sh99.43 in Lamu, Sh98.73 in Nairobi, Sh95.47 in Mombasa and Sh100.72 in Kisumu.
“A person convicted of retailing petroleum products above the maximum levels will be liable to a fine not exceeding Sh1 million, or the withdrawal of their operating licence or both," ERC regulations stipulate.
The regulation has seen mainstream traders stop selling fuel in Mpeketoni town which has four stations. Boda boda riders operating in the Mpeketoni are the most hit. They have hiked passenger prices as a result of the high cost of fuel.
“We are now forced to buy fuel from middlemen who are fleecing us. A litre of petrol has increased from Sh97 to 250 or even Sh260. The fuel is scarce and one has to go round to get a little,” James Komu, a motorist operating in the town said as quoted by Business Daily.
“We need an urgent solution. Sometime we have to go up to Mokowe town which is over 60 kilometres away in search of petrol. Some of our customers don’t understand why they have to pay more," he added.