Kenya: Independent Fuel Dealers Threaten to Suspend Purchases Over Wholesale Prices

What the report says

Independent fuel dealers in Kenya are threatening to stop buying petroleum products from oil marketing companies after accusing suppliers of charging above the wholesale price caps set by the Energy and Petroleum Regulatory Authority (EPRA). The report, carried by Capital FM and distributed by AllAfrica, says the complaint comes from the Petroleum Outlets Association of Kenya and the Kenya Independent Petroleum Dealers Association, which argued that the pricing problem is hurting the viability of independent stations.

According to the article, the associations issued a joint statement dated October 27 and urged dealers nationwide to avoid suppliers that exceed the gazetted wholesale limits. EPRA had published the October-November fuel prices on October 14, with Nairobi wholesale ceilings listed at Sh211.80 per litre for super petrol, Sh212.60 for diesel and Sh204.79 for kerosene. The groups said the new prices took effect on October 15, but they believed some oil marketers had not complied.

The dealers said they had already raised the issue with EPRA and the Ministry of Energy, but they had not seen enforcement action by the time of their statement. They warned that buying above the regulated rates was compressing margins, creating shortages at some outlets and putting others at risk of losses or closure. They also argued that prolonged non-compliance could affect fuel availability and consumer protection. The associations called on EPRA and the State Department for Petroleum to act, while saying they remained open to talks to resolve the dispute.