NAIROBI, Kenya – Independent fuel dealers have threatened to suspend purchases from oil marketing companies accused of charging above regulated wholesale prices, warning that the dispute could trigger wider shortages at petrol stations across Kenya.
The Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) say the alleged breaches have squeezed dealers’ margins, leaving some unable to restock without risking losses.
In a joint statement, the associations urged independent operators nationwide to stop buying petroleum products from suppliers charging above the maximum wholesale prices set by the Energy and Petroleum Regulatory Authority (EPRA).
The dealers warned that some independent stations were already experiencing critical stock-outs, raising concerns about the reliability of fuel supplies if the dispute continues.
The threat follows EPRA’s October 14 announcement of maximum petroleum prices for the period running from October 15 to November 14, 2026. The regulator publishes price limits under the Petroleum Act, including separate wholesale and retail ceilings.
Dealers Say Wholesale Prices Are Being Breached
POAK and KIPEDA allege that some oil marketing companies began charging independent retailers above the prescribed wholesale limits when the new pricing period took effect on October 15.
The associations say they raised the matter with EPRA and the Ministry of Energy and Petroleum through the State Department for Petroleum, but claim 12 days passed without the compliance and enforcement action they sought.
“This non-compliance by OMCs has created an unsustainable margin squeeze, making it economically impossible for independent dealers to source product legally and serve the public fairly,” the associations said.
They argue that buying fuel above the wholesale caps while remaining subject to regulated retail prices leaves dealers with insufficient margins to sustain their businesses.
The associations have not publicly identified all the oil marketing companies they accuse of breaching the limits or provided a detailed breakdown of the alleged overcharges.
The claims have not, in the material reviewed, been independently established by a regulatory finding.
What EPRA’s Nairobi Fuel Prices Show
For the October-November pricing period, EPRA set the following maximum prices in Nairobi:
| Fuel type | Maximum wholesale price | Maximum retail price |
|---|---|---|
| Super petrol | Sh211.80 per litre | Sh226.96 per litre |
| Diesel | Sh212.60 per litre | Sh227.76 per litre |
| Kerosene | Sh204.79 per litre | Sh219.87 per litre |
The wholesale limits govern the prices at which products can be sold to eligible dealers, while the retail ceilings set the maximum pump prices consumers may be charged.
The distinction is central to the dispute: independent retailers say they cannot legally pass on alleged excess wholesale costs to motorists because their selling prices remain regulated.
EPRA’s published Nairobi diesel retail ceiling is Sh227.76 per litre, rather than Sh227.27 as stated in some initial accounts of the dispute.
Dealers Demand Sanctions to Prevent Wider Disruption
The two associations have called on EPRA and the State Department for Petroleum to take swift action against companies found to be violating the published wholesale limits.
They want enforcement measures that restore compliance and enable independent retailers to purchase fuel at regulated rates.
The groups also urged the government to intervene before the dispute forces more stations to close, warning that disruptions among independent outlets could affect fuel availability for motorists, businesses and other consumers.
Their proposed action is a suspension of purchases from suppliers charging above the prescribed wholesale limits, rather than a confirmed nationwide shutdown of all independent stations.
POAK and KIPEDA nevertheless warned that operators could be forced to close temporarily if they cannot secure fuel at viable prices.
