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Fuel Shortage Fears Grow as Kenyan Dealers Threaten to Halt Purchases

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NAIROBI, Kenya — October 28, 2026

Kenya is facing the risk of further fuel supply disruptions after independent petroleum dealers threatened to suspend purchases from oil marketing companies over an ongoing dispute involving government-regulated wholesale prices.

The Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) have accused some oil marketing companies of supplying fuel to independent retailers at prices exceeding the maximum wholesale limits set by the Energy and Petroleum Regulatory Authority (EPRA).

In a joint statement issued this week, the associations said the alleged pricing violations had made it increasingly difficult for independent petrol stations to replenish their stocks while selling fuel within the regulated retail price limits.

The dealers warned that some outlets were already experiencing fuel stock-outs and could be forced to close temporarily if the dispute remained unresolved.

However, the threatened action does not mean that all petrol stations in Kenya have shut down or that a nationwide fuel shortage has been officially declared.

Why Independent Fuel Dealers Are Threatening to Stop Purchases

The dispute follows EPRA’s October 14 announcement of maximum retail and wholesale prices for the October-November 2026 pricing period.

The new prices took effect on October 15, after which the dealers’ associations allege that some oil marketing companies continued charging independent retailers above the prescribed wholesale limits.

According to POAK and KIPEDA, the difference between the prices charged by suppliers and the regulated pump prices has squeezed retailers’ profit margins.

The associations say independent operators are being forced to choose between purchasing fuel at prices they consider unsustainable, operating at a loss or suspending their businesses.

They have advised independent petroleum dealers to stop purchasing products from suppliers charging above the gazetted wholesale limits.

The associations are also calling for urgent intervention by the Ministry of Energy and Petroleum and EPRA to resolve the dispute.

Current Fuel Prices in Nairobi

EPRA’s published prices for the current October 15 to November 14 pricing period set the following maximum wholesale and retail rates in Nairobi:

Fuel typeMaximum wholesale price per litreMaximum retail price per litre
Super petrolKSh 211.80KSh 226.96
DieselKSh 212.60KSh 227.27
KeroseneKSh 204.79KSh 219.87

The wholesale limits apply to sales from suppliers to retailers, while retail ceilings govern the prices charged to consumers.

The dealers’ complaint concerns the wholesale prices they say some suppliers are charging, rather than a change to the retail ceilings themselves.

Dealers Demand Action From EPRA

POAK and KIPEDA say they have raised the matter with EPRA and the State Department for Petroleum but argue that effective enforcement has not followed.

They want the regulator to investigate the alleged violations and take action against companies found to have breached the prescribed wholesale limits.

The associations have also called on the government to intervene before the dispute leads to more independent outlets suspending operations.

They maintain that restoring compliance with the pricing rules would help retailers obtain fuel under conditions that allow them to remain in business while observing regulated pump prices.

The associations have said they remain willing to engage with the government and the regulator to reach a solution.

Could Fuel Stations Run Dry Across Kenya?

The immediate concern is whether the dispute will affect the availability of fuel at independent petrol stations.

The dealers’ associations say some outlets are already facing stock-outs and warn that prolonged disruption could affect fuel distribution.

Motorists, public transport operators and businesses could face inconvenience if more stations run out of fuel or temporarily close. Any sustained supply disruption could also add pressure to transport and operating costs.

Nevertheless, the extent of any wider shortage will depend on how the dispute develops, whether suppliers and retailers reach an agreement, and what action EPRA takes.

There is currently no confirmation that every petrol station in Kenya will be affected.

Customers are advised to check fuel availability locally and follow updates from EPRA and the Ministry of Energy and Petroleum rather than assuming that a nationwide shutdown is already underway.

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