Kenya faces the risk of fuel shortages at independent petrol stations after two dealer lobbies told their members to stop buying products from oil marketing companies (OMCs) that sell above the wholesale prices set by the Energy and Petroleum Regulatory Authority (EPRA).

In a joint statement issued on Tuesday, October 27, the Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) accused some oil marketers of ignoring the legal wholesale caps since the current pricing cycle began on October 15.

“We advise all independent petroleum operators countrywide to immediately suspend the purchase of petroleum products” from suppliers charging above the gazetted limits, the associations said.

Stock-outs already biting

The dealers say the problem is no longer theoretical. “Independent stations nationwide are facing critical product stock-outs,” the statement reads, adding that operators are being forced to choose between closing their stations and selling at a heavy loss.

According to the two associations, the oil marketers failed to apply EPRA’s published wholesale prices when the market opened on October 15, leaving small dealers in what they called an “unsustainable margin squeeze” that makes it hard to source fuel legally.

They say they took the matter to EPRA and the State Department for Petroleum, but that “12 days have elapsed without compliance or enforcement.”

The prices in dispute

In its October 14 review for the October 15 to November 14 cycle, EPRA capped Nairobi wholesale prices at Sh211.80 per litre for Super Petrol, Sh212.60 for Diesel and Sh204.79 for Kerosene.

The same review raised pump prices sharply: Super Petrol went up by Sh12.93 a litre, Diesel by Sh9.90 and Kerosene by Sh28.49. A litre of petrol now retails at a maximum of Sh226.96 in Nairobi, while kerosene costs Sh219.87.

The increases followed the government’s decision to suspend the fuel price stabilisation mechanism that had cushioned motorists from rising global oil costs, a move that has already drawn public anger over the cost of living.

For independent stations, the gap between the wholesale cap and the pump price is their entire margin. Any amount charged above the wholesale cap comes straight out of that margin, because they cannot legally sell above the pump ceiling.

What the dealers want

POAK and KIPEDA are asking EPRA and the State Department for Petroleum to:

  • Enforce the published wholesale caps on all oil marketing companies.
  • Sanction oil marketers found selling above the gazetted limits.
  • Intervene quickly to prevent more independent outlets from shutting down.

The associations warn that independent stations handle a large share of fuel distribution, so a wider shutdown could disrupt supply for motorists, matatu operators and farmers. They say they remain open to talks with the ministry and the regulator to find an immediate solution.

Not the first warning

The complaint echoes a dispute earlier this year. In April 2026, EPRA warned oil marketing companies against withholding fuel from independent retailers and charging wholesale prices above the prescribed caps, after receiving reports that some firms were holding back supplies ahead of a price review.

As of Wednesday morning, neither EPRA, the State Department for Petroleum nor any oil marketing company had publicly responded to the dealers’ latest statement.

What it means for motorists

The dealers’ call applies to independent stations, not to branded stations run by the big oil marketers. But in many smaller towns and rural trading centres, independent outlets are the nearest place to buy fuel, so any prolonged stand-off could be felt there first.

HAMASTA MEDIA will update this story when EPRA or the Ministry of Energy and Petroleum responds.

Photos: Nairobi News; Kenyans.co.ke. Thumbnail design: HAMASTA MEDIA.