Fuel Shortage Fears Grow as Kenya’s Independent Dealers Threaten to Stop Buying from Suppliers

Kenya’s independent petrol stations are warning of possible fuel shortages after dealers threatened to stop buying from oil marketing companies they accuse of charging more than the regulated wholesale prices.

The Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) issued the warning on Tuesday, 27 October, saying some stations were struggling to replenish their stocks while remaining within the retail prices set by the Energy and Petroleum Regulatory Authority (EPRA).

The dispute puts the spotlight on a problem at the heart of Kenya’s fuel pricing system: even when pump prices are regulated, independent retailers say they cannot operate sustainably if their suppliers charge them more than the permitted wholesale rates.

In a joint statement, the associations urged dealers nationwide to suspend purchases from suppliers charging above EPRA’s published limits. They also called on the regulator and the State Department for Petroleum to intervene.

The associations said some outlets were already experiencing stock-outs and warned that continued losses could force more stations to close. These are the dealers’ claims; the extent of the reported shortages has not been independently established.

Dispute centres on wholesale prices

The disagreement follows EPRA’s latest fuel price review, announced on 14 October and effective from 15 October to 14 November 2026.

For Nairobi, the regulator set maximum pump prices at KSh226.96 per litre for super petrol, KSh227.76 for diesel and KSh219.87 for kerosene. The increases were KSh12.93, KSh9.90 and KSh28.49 per litre, respectively, compared with the previous pricing period. <Cite refs=

However, the figures motorists see at the pump are not the same as the wholesale price limits that govern sales to retailers.

For Nairobi, the published wholesale ceilings were approximately KSh211.89 per litre for super petrol, KSh212.68 for diesel and KSh204.79 for kerosene. These wholesale limits are intended to govern the price at which suppliers sell the products to retailers, while the retail ceilings govern what motorists can be charged.

POAK and KIPEDA allege that some oil marketing companies have continued charging independent dealers above the wholesale limits despite complaints to EPRA and the Ministry of Energy and Petroleum.

The associations argue that this leaves independent operators squeezed between the cost of buying fuel and the maximum price at which they can sell it. If the purchase price is too high, dealers say, they risk losing money on every litre sold.

The allegations have not, in the sources reviewed for this report, been independently confirmed by EPRA or addressed in a published response from the oil marketing companies named in the dispute.

Why the threat matters to motorists

Independent dealers play a role in distributing fuel beyond the major branded networks. If large numbers stop purchasing stock, motorists in affected areas could find fewer outlets with fuel available.

The threat does not, by itself, mean Kenya is facing a nationwide fuel shortage. The immediate concern is whether the dispute leads to more stations running out of stock and whether other suppliers can maintain deliveries while the disagreement is resolved.

A prolonged disruption could also affect businesses that depend on regular fuel supplies, including public transport operators, freight companies, farmers and small enterprises. Any wider impact would depend on the number of stations affected and how quickly supplies are restored.

The associations have called for regulatory action against companies they accuse of breaching the wholesale limits. Their proposed response is to stop buying from suppliers charging above the caps, rather than continue transactions they say are financially unsustainable.

Fuel prices already under pressure

The dispute comes at a time when motorists are adjusting to higher pump prices.

EPRA’s October review raised prices for all three main petroleum products in Nairobi, with kerosene recording the largest increase per litre. The regulator’s price-setting process takes account of costs associated with imported petroleum products, including international purchase prices and shipping, alongside other regulated cost components.

EPRA Director-General Edward Kinyua has said movements in international oil markets feed into domestic fuel prices because Kenya relies on imported refined petroleum products. That broader cost pressure, however, is separate from the current allegation that some suppliers are charging retailers above the published wholesale limits.

The distinction is important. Higher international costs may affect the regulated price review, but the dealers’ complaint is about compliance with the wholesale limits already published for the current pricing period.

What happens next?

The immediate test is whether EPRA and the State Department for Petroleum can establish whether the alleged overcharging is taking place and ensure that the wholesale rules are being followed.

A clear response would help determine whether the reported stock-outs stem from breaches of the price limits, other supply problems or a combination of factors. Oil marketing companies also need an opportunity to respond to the allegations.

For independent stations, the outcome could determine whether they can continue purchasing fuel at prices that allow them to operate within the retail ceilings. For motorists, the concern is more immediate: whether their usual station will have fuel when they need it.

Until the dispute is resolved, a nationwide shortage remains a warning from the dealers rather than a confirmed outcome. But their threat raises a serious question for the regulator: can Kenya’s regulated fuel-pricing system protect consumers while ensuring retailers can obtain supplies without being pushed into losses?

About the Author

Maureen Onyango is a journalist passionate about storytelling, life coaching and spiritual lessons. She studied at the Kenya Institute of Management and enjoys telling stories that inform, inspire and empower communities.