Looming Fuel ‘Shortage’ Creeps Back

Written By John Mutiso  📝

Parts of the country have been hit by another fuel shortage as a result of a fuel supply dispute between large oil marketers and their smaller rivals.

Due to liquidity issues, the large oil marketers have reduced their stock purchases through the Open Tender System (OTS) and opted to focus on their own franchised outlets, dealing a blow to independent oil marketers who have relied on them for stocks for many years.

This means that multinational corporations are now prioritizing supplying their franchised outlets over independent dealers, who account for roughly 30% of the country’s total fuel retail station network.

The traders’ feud has left several outlets, especially in the western parts of the country, without stocks as the market is dominated by small dealers.

Due to the shortage, some rogue dealers have diverted fuel to the black market, where it is being sold for as much as Sh300 per litre, more than double the retail price ceilings set by Epra this month.

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