The Energy and Petroleum Regulatory Authority (EPRA) has issued a stern warning to oil marketing companies over alleged hoarding of petroleum products and illegal price inflation, as concerns grow over a nationwide fuel shortage.
In a directive addressed to CEOs of oil firms, Acting Director General Joseph Oketch assured Kenyans that the country has adequate fuel reserves, despite long queues being reported at filling stations.
Artificial Shortage Under Investigation
EPRA revealed that preliminary investigations point to deliberate supply disruptions by some oil marketers.
According to the regulator, certain companies are withholding fuel supplies from independent retailers in anticipation of higher prices in upcoming pricing cycles.
This practice, EPRA warned, amounts to hoarding, which is a criminal offence under the Petroleum Act No. 2 of 2019.
“Companies found hoarding petroleum products shall have committed an offence,” said Dr. Oketch.
Offenders risk:
- A fine of not less than KSh 1 million
- Imprisonment of at least one year
- Or both penalties
Crackdown on Price Manipulation
Beyond hoarding, EPRA also flagged cases of oil firms charging above the regulated wholesale (ex-depot) prices.
This, too, is a serious offence under the law.
“Oil marketing companies found to have sold petroleum products above the recommended prices shall… be liable to a fine of not less than KSh 10 million or imprisonment of not less than five years,” EPRA stated.
The authority warned that it could go a step further by revoking licences of non-compliant companies.
Government Reassures on Fuel Stocks
Even as panic builds, the government has moved to calm fears.
Treasury Cabinet Secretary John Mbadi recently confirmed that Kenya currently holds sufficient fuel stocks to cushion the country in the short term.
According to Mbadi:
- Petrol stocks: 16 days
- Diesel stocks: 19 days
- Jet fuel & kerosene: 49 days
He added that under the government-to-government fuel supply arrangement, shipments are being sourced from alternative regions such as Europe and India to avoid disruptions linked to global tensions.
Global Crisis Adding Pressure
The situation has been worsened by rising geopolitical tensions involving Iran, the United States, and Israel.
The conflict has pushed global oil prices upward, triggering fears of higher fuel costs locally and prompting speculative behavior among some suppliers.
Long Queues Raise Alarm
Across several parts of Kenya, motorists have reported long queues at fuel stations, further fueling anxiety over possible shortages.
However, EPRA insists the scarcity is artificial, driven by market manipulation rather than actual supply constraints.
Tough Action Looms
EPRA has made it clear that enforcement will be strict.
Companies found violating regulations risk:
- Heavy fines
- Jail terms
- Loss of operating licences
The regulator says it will not hesitate to act decisively to protect consumers and maintain market stability.
Conclusion
As Kenya grapples with fuel shortage fears, EPRA’s warning signals a tough stance against rogue oil marketers.
While global pressures continue to influence fuel markets, authorities insist the current crisis is largely man-made—and preventable.
For consumers, the key question now is whether enforcement actions will restore normal supply and stabilize prices in the coming days.