Kenyans Face Fuel Supply Risk Amid Dealer Dispute

Independent petroleum dealers in Kenya have warned of potential fuel supply disruptions, citing disputes over pricing with oil marketing companies. The Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) issued a joint statement on October 27, expressing concerns that the conflict could lead to the closure of independent petrol stations.

The associations allege that Oil Marketing Companies (OMCs) are selling fuel to independent dealers at prices exceeding the maximum wholesale rates set by the Energy and Petroleum Regulatory Authority (EPRA) on October 14. Despite repeated complaints to the regulator and the Ministry of Energy, the situation has remained unresolved since October 15, when new fuel prices were implemented.

The dispute has left independent petrol stations struggling to acquire fuel at prices that allow them to operate without incurring losses. The situation has raised fears of a possible fuel supply disruption, as dealers threaten to halt fuel purchases, potentially impacting the availability of fuel across the country.