By Andrew Kariuki
The Energy and Petroleum Regulatory Authority (EPRA) has cautioned oil marketing companies against hoarding petroleum products and inflating wholesale prices following reports of an artificial fuel shortage across the country.
In a statement to chief executives of oil firms, Acting Director General Dr. Joseph Oketch said the country has adequate fuel stocks despite concerns over shortages at retail stations.
Preliminary findings indicate that some companies may be withholding supplies from non-franchised retailers, commonly referred to as independent dealers, in anticipation of a price increase.
EPRA said such conduct amounts to hoarding and is an offence under Section 99(1)(k) of the Petroleum Act, 2019.
“Companies found hoarding petroleum products shall have committed an offence 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 both,” Dr. Oketch said.
The regulator also flagged instances where companies are charging above the recommended ex-depot or wholesale prices, which is prohibited under Section 99(1)(n) of the same law.
“Oil marketing companies found to have sold petroleum products above the recommended ex-depot or wholesale prices 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 both,” he added.
EPRA warned that it may take further action against companies found culpable, including revoking their operating licences.
The directive comes as motorists continue to experience long queues at petrol stations in various parts of the country amid concerns over supply disruptions and possible price increases linked to global developments.
Treasury Cabinet Secretary John Mbadi recently told the National Assembly that current fuel stocks stand at 16 days for petrol, 19 days for diesel, and 49 days for jet fuel and kerosene.
He added that additional shipments are expected, noting that suppliers under the government-to-government fuel arrangement are sourcing from regions not affected by ongoing geopolitical tensions.
