As the busy Christmas period was kicking in, the Energy and Petroleum Regulatory (EPRA) in November 2019 announced new profit margins for petroleum products retailers. The dispute over profit margins is one among several issues the retailers on the one hand, and oil marketing companies and EPRA on the other, have locked horns. For instance, retailers have also accused the regulator of failing to take action on fuel losses during delivery of up to 350 litres per order, and complaints over intimidation by oil marketing companies. PROFIT MARGINSIn the particular case of profit margins, the retailers say that oil marketing companies came up with new charges such as working capital charge, Health Safety, Environment and Quality (HSEQ) charge, digital charge, research and development, training and assistance charge and through-put charge. According to the court papers, the oil marketing companies have been trying to regularise the illegal charges by coercing the dealers to sign amendments to the existing dealership marketing license agreements.

Source: Daily Nation July 19, 2020 06:22 UTC