CONSULTATIONS ON

The Government has suspended with immediate effect a controversial directive to increase fuel import inspection fees that has seen pump prices rise by Sh4.

The decision was announced after a consultative meeting between the Ministry of Industrialisation, the Petroleum Institute of East Africa (PIEA), the Public Procurement Oversight Authority and Kenya Bureau of Standards (KEBS) held at the Ministry headquarters in Nairobi.

A statement from the Industrialisation Ministry said:

The meeting also made the following resolutions: -

1. All the money already paid for inspection by oil industry players in the country since 1st of March this year will be refunded.
2. The Government through the Kenya Bureau of Standards will carry out the inspection of quality and quantity of petroleum products.
3. A technical Committee comprising of membership from KEBS and members of the PIEA has been set up to review the petroleum inspection program.

The Government noted with concern that following the outsourcing of the inspection of petroleum by KEBS to Geo- Chem at the port of Mombasa, importers have had to incur more than was the case in the past.

All associated costs of quality inspection are borne by the importers as part of the landed product cost which has henceforth been passed on to consumers.

The PIEA was represented by all members under the Chairmanship of Felix Majekodunni who is also the Total Kenya managing Director.