Kenya Faces Possible Fuel Shortages as Dealers Protest Prices

A person fueling a vehicle

Kenya could face fuel supply disruptions after independent petroleum dealers threatened to stop buying products from suppliers charging above regulated wholesale prices. The dealers say the dispute with oil marketing companies is putting their businesses at risk of closure.

In a joint statement issued on Tuesday, October 27, the Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) raised the alarm. They urged independent petrol stations nationwide to suspend purchases from suppliers allegedly exceeding the limits set by the Energy and Petroleum Regulatory Authority (EPRA).

Dealers Accuse Oil Marketers of Overcharging

The associations accused oil marketing companies of selling fuel to independent dealers above the maximum wholesale prices published by EPRA on October 14. They said the problem began on October 15, when the latest fuel prices took effect.

According to the dealers, repeated complaints to EPRA and the Ministry of Energy have not resolved the dispute. They claim the higher wholesale charges leave independent stations unable to operate without suffering financial losses.

The associations warned that some outlets were already experiencing serious fuel shortages. They said operators faced a difficult choice between shutting down their businesses and continuing to sell fuel at a loss.

The dealers called on EPRA and the State Department for Petroleum to investigate the alleged violations. They warned that continued failure to resolve the dispute could force more independent stations to close.

Wholesale and Pump Prices Under Scrutiny

EPRA's October 15 to November 14 pricing cycle introduced significant increases in fuel prices across Kenya. In Nairobi, the regulator set maximum wholesale prices at KSh211.80 per litre for petrol, KSh212.60 for diesel and KSh204.79 for kerosene.

However, retail pump prices were higher, reaching KSh226.96 for petrol, KSh227.76 for diesel and KSh219.87 for kerosene in Nairobi. The independent dealers claim some suppliers are charging them wholesale rates above the regulated limits.

During the review, EPRA increased petrol prices by KSh12.93 per litre and diesel by KSh9.90. Kerosene recorded a larger increase of KSh28.49 per litre.

Fuel Dispute Follows Price Stabilisation Changes

The latest increases followed the government's suspension of the fuel price stabilisation mechanism. The programme had previously helped cushion motorists against rising international petroleum costs.

EPRA Director General Edward Mwirigi Kinyua said the funds would be preserved to help manage future price increases. The suspension has added to concerns about rising fuel costs for households and businesses.

Independent dealers say enforcement of the wholesale price limits is necessary to protect their operations. If the dispute continues, their threatened purchasing suspension could affect fuel availability at stations across the country.

The government and regulators now face pressure to address the allegations and prevent possible supply interruptions. However, the extent of any disruption will depend on whether the dispute is resolved and dealers resume normal purchases.