The Energy and Petroleum Regulatory Authority (EPRA) has addressed reports of an artificial shortage of petroleum products across the country despite confirmation that national fuel stocks remain sufficient.
In a statement on Wednesday, April 8, EPRA indicated that its investigations have uncovered practices by certain Oil Marketing Companies (OMCs) that are contributing to the perceived shortage.
The authority explained that early findings suggest that some companies are withholding supply in anticipation of price changes.
"Preliminary investigations indicate that some Oil Marketing Companies (OMCs) are deliberately holding back sales to non-franchised petroleum retailers, otherwise known as independents, in anticipation of a price increase. 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)," the statement read.
EPRA revealed that some OMCs are also violating pricing regulations at the wholesale level.
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"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 statement added.
The regulator issued a warning to companies engaging in such practices, outlining the legal consequences of hoarding fuel supplies.
"Accordingly, OMCs are hereby warned that companies found hoarding petroleum products shall have committed an offence under Section 99(1)(k) of the Petroleum Act and shall, on conviction, be liable to a fine of not less than Ksh1 million, or a term of imprisonment of not less than one year, or to both such fine and imprisonment," the statement continued.
On the issue of overpricing, EPRA underscored even stricter penalties, including a fine of not less than Ksh10 million.
"Further, OMCs found to have sold petroleum products above the recommended ex-depot or wholesale prices shall have committed an offence under Section 99(1)(n) of the Petroleum Act and shall on conviction be liable to a fine of not less than Ksh10 million, or a term of imprisonment of not less than five years, or to both such fine and imprisonment," the statement further read.
In addition to fines and jail terms, the authority warned that companies risk losing their licenses altogether if found culpable.
"Additionally, EPRA shall not hesitate to permanently revoke the operational licences for OMC's who will have committed the aforementioned offences," the statement concluded.
At the same time, the Kenya Pipeline Company has moved to address fears of a possible fuel crisis after widespread reports of shortages at petrol stations across the country.
In a statement on Wednesday, the state corporation acknowledged public concern but maintained that the country’s fuel supply remains stable and sufficient to meet demand.
"We wish to assure the public that there is sufficient fuel in all of our terminals and depots and that the products meet national and international quality standards as prescribed by relevant certification bodies," the statement read.
KPC explained that its extensive infrastructure plays a key role in ensuring an uninterrupted fuel supply across the country and the wider region.
"The Company operates 1,342 kilometres of pipeline network linking the Port of Mombasa to key inland depots in Nairobi, Nakuru, Eldoret, and Kisumu.
"This network is supported by modern storage facilities with a cumulative capacity of over 1 billion litres, enabling the Company to maintain adequate strategic stocks and ensure consistent supply across the country and the wider region," the statement added.
The company also released stock figures, to reinforce its position that fuel availability remains strong nationwide.
According to KPC, at Kipevu Oil Storage, super petrol stocks stand at 29,648 cubic metres, diesel at 37,291 cubic metres, and jet fuel at 60,977 cubic metres.
At Kenya Petroleum Refineries, super petrol stocks are recorded at 64,742 cubic metres, diesel at 46,118 cubic metres, and jet fuel at 18,438 cubic metres.
In Nairobi, super petrol stocks amount to 50,024 cubic metres, diesel stands at 55,245 cubic metres, while jet fuel is at 1,317 cubic metres.
Nakuru records 6,645 cubic metres of super petrol and 11,638 cubic metres of diesel, with no jet fuel stock indicated.
In Eldoret, super petrol stocks are 8,068 cubic metres, diesel stands at 7,191 cubic metres, and jet fuel at 1,427 cubic metres.
Meanwhile, Kisumu has 7,468 cubic metres of super petrol, 25,125 cubic metres of diesel, and 275 cubic metres of jet fuel.
