EPRA in a fresh bid to limit the number of petrol stations built in an area
EPRA in a fresh bid to limit the number of petrol stations built in one area over concerns of mushrooming of stations
EPRA in a fresh bid to limit the number of petrol stations built in one area over concerns of mushrooming of stations.
Plans to control the establishment of petrol stations across the country have been revealed by Daniel Kiptoo, director general of the Energy and Petroleum Regulatory Authority (EPRA).
On Thursday, December 8, during a conference, Kiptoo stated that the authority was concerned about the proliferation of petrol stations.
He pointed out that having numerous stations nearby has an impact on business.
The DG mentioned instances where petrol stations were experiencing decreased sales as a result of station congestion.
“The infrastructure from 2010 to 2022 has really grown. The mushrooming of stations is an area we are looking at.
“In some areas, stations that were doing 200,000 to 300,000 litres a month are now doing 70,000 to 80,000 a month because there are four or five stations in the area,” he divulged.
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Kiptoo asserted that the authority would set a standard guide that would be used when approving the setting up of stations.
“We are coming up with a regulation that will give the radius where will not be allowing new stations because the economics does not make sense.
“This will not only protect the consumers but also the entrepreneurs such that, they do not have to make an investment that will cripple them,” he explained.
However, he did not indicate the measure of the radius or when the new regulations would be fully enforced.
EPRA’s move was welcomed by stakeholders who noted that such regulations would create order in the industry.
“In as much we are in a free market, it is important that we have some order. There is no need to have five petrol stations in a five-kilometre radius, most investors will lose out,” Oryx Energies manager James Ngugi stated.
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