ERC cancels license issued to Kipeda Holdings Limited over fuel distribution.

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Photo Courtesy:Petroleum Distributors ground their trucks to protest the new 16% tax on fuel.

The Energy Regulatory Commission (ERC) has revoked  a licence issued to Kenya Independent Petroleum Distributors Association (Kipeda) Holdings Limited, a body corporate licensed by the Commission to carry out Import, Export and Wholesale of Petroleum Products

In a statement  sent to  newsrooms on Wednesday evening, ERC  accused KIPEDA  for allegedly spearheading a boycott of petroleum products  following  the 16 percent VAT on petroleum products in which the commission said caused economic sabotage.

“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 the said licensee pursuant to Section 85 of the Energy Act No.12 of 2006,’’ ERC statement

The comes after traffic snarl-up were witnessed at fuel stations across the city as the outlets had stopped restocking petroleum products over speculation on the signing into law of the Finance Bill of 2018 which seeks to further suspend the 16 per cent Value Added Tax for two years.

The energy regulator further stated that KIPEDA Holdings was no longer licensed to carry out importation, exportation and selling of petroleum products.

“KIPEDA Holdings Limited is therefore no longer licenced to carry out import, export and wholesale of petroleum products.”ERC statement

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