ERC cancels licence of KIPEDA as VAT on fuel battle persists

Heavy presents of Police officers at Naivasha road on 5th September 2018,tanker owners, re-sellers and Petroleum product drivers block Nairobi depo over 16% VAT taxt. [Photo: Edward Kiplimo,Standard]

The Energy Regulatory Commission has cancelled licence of Kenya Independent Petroleum Distributors Association (Kipeda Holdings Limited) claiming that the company is spearheading distributors’ strike against 16 percent VAT on fuel.

A statement from ERC has fingered Kipeda Holdings Limited as the main perpetrator in the on-going strike which has resulted in fuel shortage, frustrating motorists after the fuel tax came into effect on September 1.

‘’The Commission therefore wishes to inform members of the public that the action by KIPEDA Holdings Limited amounts to economic sabotage and hereby cancels the licence of thesaid licensee pursuant to Section 85 of the Energy Act No.12 of 2006,’’ reads statement from ERC.

It adds that: ‘’KIPEDA Holdings Limited is therefore no longer licenced to carry out import, export and wholesale of petroleum products. All ERC licensees are advised to strictly adhere to licence conditions.’’

This precedes public outcry after the Government announced the new prices for fuels, with many people decrying the skyrocketing cost of living.

Earlier in the day, Inspector General Joseph Boinet issued ultimatum to the petroleum distributors who had paralyzed operation in Industrial Area to vacate the area, failure to which he vowed to arrest them.

  Motorists likewise have expressed their displeasure at the new taxes imposed on fuel, with travellers made to bear the brunt of impacts of the tax in increased bus fares.

More to follow...