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By NEVILLE OTUKI
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Rogue dealers are still blending kerosene with diesel to net super profits despite the government raising paraffin
Unscrupulous They are adulterating diesel since paraffin, which attracts lower taxes, is cheaper per liter, and makes them highly profitable.
Fuel adulteration leads to economic losses in unpaid taxes, deterioration in performance of engines and unfair competition.
In June, Treasury Secretary raised the excise levy on kerosene from Sh7.21 per liter to Sh10.31 for the same volume to match that of diesel.
The Sh3 jump, however, fell short of bridging the gap between two products. This is because of diesel and petrol each year, but there is still a great deal of profit, "said Anne-Solange Renouard, chairperson of Petroleum Institute of East Africa (PIEA) – the oil marketers lobby.
The PIEA reckons that 80 per cent of imported kerosene is
"In a public statement from the Energy Regulatory Commission, it was confirmed that only 33 million liters of Kerosene were actually consumed. "said Ms Renouard."
"This means that the taxman loses approximately $ 2634 trillion tax evasion."
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