Kenyan Fuel Dealers Threaten to Stop Buying Petrol as Dispute Over Prices Deepens

Kenya could face further fuel supply disruptions after independent petroleum dealers threatened to suspend purchases from oil marketing companies over alleged violations of government-regulated wholesale prices. The dispute has raised concerns about petrol station stock-outs, with dealers demanding urgent intervention before more outlets are forced to close or operate at heavy financial losses.

The warning was issued by the Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA), which accused oil marketing companies of supplying petroleum products at prices exceeding the maximum wholesale limits published by the Energy and Petroleum Regulatory Authority (EPRA). The allegations have not been independently verified.

In a joint statement dated October 27, 2026, the associations advised independent petroleum operators nationwide to immediately stop purchasing fuel from suppliers charging above the gazetted wholesale limits. They argued that the alleged violations had made it increasingly difficult for smaller retailers to restock while remaining within the regulated pump prices.

According to the associations, the dispute began when the latest fuel pricing cycle took effect on October 15. They claimed that complaints had been presented to EPRA and the State Department for Petroleum, but the alleged pricing violations remained unresolved, leaving independent dealers struggling to maintain normal operations amid mounting business pressures.

Wholesale Prices at the Centre of the Dispute

EPRA announced new maximum retail fuel prices on October 14, covering the period between October 15 and November 14, 2026. In Nairobi, the regulator set the maximum wholesale price of super petrol at KSh211.80 per litre, diesel at KSh212.60 and kerosene at KSh204.79.

The corresponding maximum retail prices in Nairobi were set at KSh226.96 per litre for super petrol, KSh227.76 for diesel and KSh219.87 for kerosene. The latest review increased petrol by KSh12.93, diesel by KSh9.90 and kerosene by KSh28.49, adding pressure on households and businesses.

POAK and KIPEDA argue that independent retailers cannot operate sustainably if suppliers charge them more than the permitted wholesale rates while they remain restricted by the maximum retail prices. They say the difference between purchasing and selling prices must cover operating expenses, making compliance financially difficult when wholesale limits are allegedly exceeded.

The associations described the situation as an unsustainable squeeze on profit margins, warning that dealers were being forced to choose between closing their businesses and continuing to trade while absorbing substantial losses. They further cautioned that prolonged difficulties could weaken independent outlets that contribute significantly to fuel distribution across the country.

The two organisations want EPRA and the State Department for Petroleum to take immediate enforcement action against oil marketing companies found violating the prescribed wholesale prices. They are also demanding sanctions against non-compliant suppliers, arguing that consistent enforcement is necessary to protect retailers and maintain confidence in Kenya’s regulated petroleum pricing system.

The associations warned that independent stations were already experiencing serious fuel stock-outs. If the dispute continues, motorists could find fewer operating outlets in affected areas, although the scale of any wider disruption will depend on how many dealers suspend purchases and how quickly the disagreement is resolved.

The dispute comes amid rising fuel costs following EPRA’s October review. The regulator has attributed international price movements partly to developments in global oil markets, with EPRA Director General Edward Mwirigi Kinyua pointing to the impact of the Middle East conflict on petroleum prices.

Kinyua said international petrol prices had risen considerably during the crisis. He also explained that the adjustment to kerosene prices was partly intended to narrow the difference between kerosene and automotive fuels, a gap authorities say can encourage the adulteration of petrol and diesel with cheaper products.

Despite their warning, POAK and KIPEDA have indicated their willingness to engage with the Ministry of Energy and Petroleum and EPRA to resolve the dispute. Their immediate demand, however, remains enforcement of the published wholesale limits and action against any oil marketers found to have breached the applicable rules.

The outcome could determine whether independent fuel retailers resume normal purchasing or continue facing difficulties replenishing their stocks. For motorists, transport operators and businesses, attention now turns to the regulator and the government for a response that could ease the standoff and help maintain reliable fuel supplies across Kenya.

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