Published May 21, 2014

THE government should withdraw the tax waiver on kerosene to eliminate the adulteration of diesel and petrol by unscrupulous traders, the Petroleum Institute of East Africa has said.

The chairman, Polycarp Igathe, said their studies have established that kerosene is subsidised to the tune of Sh7 billion annually.  He said the subsidy has pushed adulteration of fuel to alarming rates since the greedy traders find it an easier route for increasing profits.

“We are aware the government withdrew duties on kerosene in order to support the poor man. However, our statistics show that over 80 per cent of subsidised kerosene is used by criminals to adulterate petrol and diesel,” He said.

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