“Stop Hiking Fuel Prices!” – EPRA Warns Oil Marketers, Begins Crackdown
The Energy and Petroleum Regulatory Authority (EPRA) has moved to crack down on oil marketing companies accused of fueling an artificial fuel shortage and hiking prices, even as the country reports adequate petroleum stocks.
In a directive dated Wednesday, April 8, EPRA said it had received reports indicating that some marketers were deliberately hoarding petroleum products and restricting supply to independent retailers in anticipation of a price increase.
The regulator noted that preliminary investigations had established that certain Oil Marketing Companies (OMC) were withholding sales to non-franchised dealers, a move it termed unlawful and punishable under the Petroleum Act.
EPRA further revealed that some firms were also charging ex-depot or wholesale prices above the set regulatory caps, compounding the crisis being experienced across the country.
“This practice is tantamount to hoarding and is an offence under Section 99(1)(k) of the Petroleum Act No. 2 of 2019 (Cap 308),” read part of the letter signed by EPRA acting DG Engineer Joseph Oketch.
“Further, EPRA has found out that a number of OMCS are charging ex-depot or wholesale prices higher than the recommended caps, which is also an offence under Section 99 (1)(n) of the Petroleum Act.”
The authority warned that companies found guilty of hoarding petroleum products risk fines of at least Ksh1 million, imprisonment for a minimum of one year, or both.
Additionally, those found selling fuel above the recommended wholesale prices face stiffer penalties, including fines of no less than Ksh10 million or jail terms of up to five years.
EPRA cautioned that it would not hesitate to revoke the operational licences of companies found engaging in unlawful practices, signalling a tough regulatory stance.
The crackdown comes at a time when motorists across the country are grappling with a worsening fuel shortage, with long queues forming at petrol stations amid dwindling supplies.
In Nairobi, most stations remain operational, but operators warn that existing stocks could run out within days as deliveries slow and panic buying intensifies.
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In other regions such as Nyamira and Kericho, the situation is more difficult, with several stations shutting down and others operating on extremely limited supplies, forcing motorists to travel long distances in search of fuel.
Some stations have resorted to selling only high-octane fuel at prices nearing Ksh200 per litre, significantly higher than standard pump prices, further angering consumers.
Despite the crisis on the ground, the Kenya Pipeline Company (KPC) has maintained that the country has sufficient fuel reserves, dismissing claims of a nationwide shortage.
KPC stated that its depots and terminals across the country are well stocked, with significant volumes of petrol, diesel, and jet fuel available to meet both current and future demand.
“Stop Hiking Fuel Prices!” – EPRA Warns Oil Marketers, Begins Crackdown
