Marketers’ relief as diesel profit margins partly back
Oil marketing companies have been handed a slight reprieve after the government partially reinstated a profit margin on diesel, which is the most consumed fuel product, for the first time in months.
Epra retains cross-subsidisation where petrol users pay more for stable prices.
Fuel dealers have been selling diesel and kerosene at zero margins and then waiting for months to be reimbursed the money by the National Treasury, which hit the firms with cash flow headaches.
With Treasury failing to pay billions of shillings in subsidy arrears for months, oil marketers have been forced to rely on loans to replenish their stocks.
Oil marketing companies have been handed a slight reprieve after the government partially reinstated a profit margin on diesel, which is the most consumed fuel product, for the first time in months.
The Energy and Petroleum Regulatory Authority (Epra) on Tuesday retained pump prices for Nairobi at Sh177.3 per litre for petrol, Sh162 for diesel, and Sh145.94 for kerosene.
