Fuel Crisis Looms as Kenyan Dealers Threaten to Halt Purchases Over Wholesale Price Dispute

Independent fuel dealers across Kenya have threatened to suspend fuel purchases from oil marketing companies accused of charging prices above the regulated wholesale limits, raising fresh concerns about possible shortages at petrol stations.

The Petroleum Outlets Association of Kenya and the Kenya Independent Petroleum Dealers Association have called on the government to intervene in the dispute, warning that continued disagreements could disrupt fuel distribution and inconvenience motorists.

In a joint statement dated Tuesday, October 27, 2026, the two associations advised independent petroleum dealers nationwide to immediately stop purchasing petroleum products from suppliers charging above the maximum wholesale prices published by the Energy and Petroleum Regulatory Authority.

The dealers argue that some oil marketing companies have continued selling fuel at prices exceeding the prescribed limits, making it increasingly difficult for independent stations to operate profitably while complying with regulated retail prices.

According to the associations, the situation has squeezed dealers’ profit margins and contributed to stock-outs at some independent petrol stations.

The dispute follows EPRA’s publication of the latest wholesale and retail fuel price caps, which took effect on October 15, 2026, for the October-November pricing cycle.

Under the published limits for Nairobi, the maximum wholesale prices were set at KSh211.80 per litre for super petrol, KSh212.60 for diesel and KSh204.79 for kerosene.

The corresponding maximum retail prices were set at KSh226.96 per litre for super petrol, KSh227.27 for diesel and KSh219.87 for kerosene.

The associations maintain that suppliers charging above the wholesale ceilings are placing independent dealers in a difficult position, forcing some to choose between operating at a loss and suspending business until the dispute is resolved.

They have urged EPRA and the State Department for Petroleum to investigate the alleged violations and take action against companies found to be disregarding the regulated prices.

The dealers also want the government to ensure that all oil marketers comply with the applicable pricing rules to protect businesses and consumers.

The dispute has raised concerns about the reliability of fuel supplies, particularly if more independent stations suspend purchases.

Any prolonged disruption could affect motorists, public transport operators and businesses that depend on petroleum products.

However, the threatened suspension does not automatically mean that all petrol stations will run dry, as the extent of any disruption will depend on how the dispute unfolds.

POAK and KIPEDA say they remain open to negotiations with the government and the regulator to resolve the matter and restore normal trading conditions.

The latest developments place pressure on authorities to address the allegations and prevent the pricing dispute from escalating into a wider fuel supply crisis.

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