Petroleum dealers threaten to suspend purchases over unfair prices from OMCs

The Petroleum Outlets Association of Kenya (POAK) and Kenya Independent Petroleum Dealers Association (KIPEDA) argue that OMCs have continued retailing petroleum products at high rates against the set cap by the Energy and Petroleum Regulatory Authority (EPRA) on October 14, 2026.

In EPRA's monthly review, petrol rose by Ksh.12.93, Ksh.9.90 for diesel and Ksh.28.49 for kerosene in Nairobi.

Super Petrol now sells at Ksh.226.96 a litre and Diesel at Ksh.227.76. Kerosene, the fuel of the poor, costs Ksh.219.87 in Nairobi.

The outlets claim that since EPRA's gazettement, OMCs have sold petroleum products to independent dealers at prices above the maximum wholesale caps. 

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

They argue that the situation has sparked alarming shortages, forcing them to opt for shutting down operations or operating at severe financial losses. 

"The refusal of OMCs to adhere to wholesale caps threatens to undermine consumer price protections guaranteed by law," they added. 

They now want all independent petroleum operators to suspend the purchase of petroleum products at rates exceeding the gazetted EPRA wholesale limits. 

They also demand EPRA and the State Department for Petroleum to impose sanctions against non-compliant OMCs to restore lawful trading conditions immediately.

"The government must act decisively to prevent a full-scale shutdown of independent retail outlets, which account for a massive share of the country's fuel distribution network," they noted.

They now invite talks with the Ministry and EPRA to resolve the matter.

EPRA's new Director General, Eng. Edward Mwirigi Kinyua, pointed to turmoil linked to the Middle East conflict. He said petrol prices on international markets had risen to about US$1,300 per ton, from roughly US$600 earlier in the crisis. 

He also said part of the kerosene adjustment was meant to narrow the gap between kerosene and automotive fuels, because that gap encourages dealers to adulterate petrol and diesel with the cheaper product.