Independent Fuel Dealers Threaten to Suspend Oil Purchases Over Pricing Dispute

Independent petroleum dealers have threatened to suspend purchases of fuel from oil marketing companies (OMCs) over alleged violations of government-regulated wholesale prices.

In a joint statement on Wednesday, October 28, the Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) said oil marketing companies had been selling petroleum products to independent dealers at prices exceeding the maximum wholesale rates gazetted by the Energy and Petroleum Regulatory Authority (EPRA).

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The two associations called for urgent government intervention, warning that the dispute had created unfavourable trading conditions for independent fuel retailers.

"We, the undersigned representatives of the independent petroleum dealers across Kenya, issue this Joint Communiqué to draw urgent national attention to an ongoing crisis that threatens the collapse of independent retail outlets and compromises national energy security," the statement read.

The dispute followed EPRA's publication of the maximum retail and wholesale petroleum prices for the October-November pricing cycle on October 14 under its mandate pursuant to the Petroleum Act.

For Nairobi, the regulator set the maximum wholesale price of super petrol at Ksh211.80 per litre, while the maximum retail price was Ksh226.96 per litre.

Diesel was capped at Ksh212.60 per litre at the wholesale level and Ksh227.27 per litre at the retail level. Kerosene had a maximum wholesale price of Ksh204.79 per litre and a retail cap of Ksh219.87 per litre.

However, POAK and KIPEDA accused oil marketing companies of disregarding the prescribed wholesale prices when the market opened on October 15, leaving independent dealers struggling to obtain fuel within the legally established limits.

"When the market opened on 15th October 2026, Oil Marketing Companies (OMCs) systematically defied the gazetted rates, selling petroleum products to independent dealers at prices significantly above the statutory maximum wholesale caps," the statement added.

The associations said they had raised the matter with EPRA and the Ministry of Energy and Petroleum through the State Department for Petroleum but accused the authorities of failing to secure compliance or enforce the regulations.

"Despite immediate escalations by POAK and KIPEDA to EPRA and the Ministry of Energy and Petroleum (State Department for Petroleum), 12 days have elapsed without compliance or enforcement," the statement further read.

According to the two organisations, the alleged violations had squeezed independent dealers' profit margins, making it increasingly difficult for them to purchase fuel at lawful prices while maintaining fair prices for consumers.

"This non-compliance by OMCs has created an unsustainable margin squeeze, making it economically impossible for independent dealers to source products legally and serve the public fairly," the statement noted.

In response, POAK and KIPEDA advised independent petroleum operators across the country to immediately stop purchasing petroleum products from oil marketing companies charging wholesale prices above EPRA's gazetted limits.

The associations also demanded that EPRA and the State Department for Petroleum take swift regulatory action against companies found to be violating the prescribed prices, saying enforcement was necessary to restore lawful trading conditions.

They further urged the government to intervene to prevent a wider shutdown of independent fuel stations, warning that the disruption could affect a significant portion of Kenya's fuel distribution network.

The dispute places pressure on the relevant authorities to address the pricing complaints and ensure that petroleum dealers can access products under the applicable regulatory framework.

Despite the threat to suspend purchases, the associations said they were willing to engage with the government and the regulator to find a solution.

"We remain open to immediate constructive engagement with the Ministry and EPRA to resolve this bottleneck and restore market integrity," the statement concluded.

This comes days after the Matatu Owners Association President Albert Karakacha directed its members to increase fares by 10 percent following the October-November fuel price review.

Karakacha explained that the fare increase was necessary for business, after EPRA announced a Ksh9.90 per litre n increase in diesel costs.

He further accused President William Ruto of reneging on his promise that there would be no increase in diesel prices, and warned that the 'betrayal' would be felt most by the common Kenyan.

"As the association, we have consulted widely and have told our members to increase fares by 10 percent because we are businessmen and we need to make a profit," Karakacha said.

The MOA President hinted that the new prices will take effect immediately and apologised to parents. He empathised with them as they would bear the brunt of paying higher bus fare for their children who are closing for the long holiday.

"Today, tomorrow and Monday, schools are closing, and the majority of parents had budgeted for the fare. We are sorry for them because we have to increase the fare so that we can continue to do business," he stated.

Karakacha said that the Ruto government, which said it is going to take care of the hustlers, needs to come out clearly on how it will reduce the taxes on fuel.

He further alleged that Ruto's administration had done nothing to fulfil some of the promises it made to public service operators in May when they went on strike.

The MOA President noted that some of its members were still being auctioned by lending institutions for defaulting on loans, yet the government had promised to mediate their case with the banks.