Fuel Shortage Looms as Kenyan Dealers Threaten to Halt Supply Over Pricing Dispute

Kenya could face a fuel supply disruption after independent petroleum dealers threatened to suspend fuel purchases from oil marketing companies accused of charging wholesale prices above the limits set by the Energy and Petroleum Regulatory Authority (EPRA).

The warning was issued on Tuesday, October 27, by the Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA), which raised concerns over the continued dispute between independent dealers and oil marketing companies.

In a joint statement, the associations accused oil marketing companies of selling petroleum products to independent dealers at prices exceeding the maximum wholesale rates published by EPRA on October 14.

According to the dealers, the problem began on October 15, when the latest fuel prices took effect. They claim the situation has made it difficult for independent petrol stations to purchase fuel at prices that allow them to operate without making losses.

The associations further stated that they had raised their concerns with EPRA and the Ministry of Energy but the issue had persisted, leaving independent dealers struggling to maintain their businesses.

As a result, the two associations have advised their members across the country to stop purchasing petroleum products from suppliers charging above the gazetted wholesale price limits.

The move has raised fears of possible fuel shortages if independent dealers follow the directive and the disagreement remains unresolved.

Independent petrol stations play an important role in supplying fuel to motorists and other consumers across the country. Any widespread suspension of purchases could affect the availability of petroleum products, depending on how many dealers participate in the action.

The dispute now puts pressure on the relevant authorities and oil marketing companies to address the concerns raised by the dealers.

Consumers will be watching closely as the situation develops, particularly if the disagreement begins affecting fuel availability at petrol stations.

For now, the key concern is whether the parties can resolve the pricing dispute before independent dealers suspend purchases on a wider scale.

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