Kenya: Petroleum Dealers Protest High OMC Prices, Call For Suspension Of Purchases

Kenya’s independent petroleum dealers have accused oil marketing companies (OMCs) of selling fuel above regulated wholesale price caps, squeezing their margins and threatening the viability of their businesses.

The Petroleum Outlets Association of Kenya (POAK) and the Kenya Independent Petroleum Dealers Association (KIPEDA) say OMCs have continued supplying fuel at prices above the maximum wholesale limits set by the Energy and Petroleum Regulatory Authority (EPRA) on October 14, 2026.

In its monthly price review, EPRA increased the maximum retail prices in Nairobi by KSh12.93 per litre for petrol, KSh9.90 for diesel and KSh28.49 for kerosene.

The adjustments took petrol to KSh226.96 per litre, diesel to KSh227.76 and kerosene to KSh219.87.

The associations said OMCs had been selling petroleum products to independent dealers above the gazetted wholesale caps since the review took effect.

“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,” the associations said in a statement carried by local media.

They said the situation had caused fuel shortages, leaving independent dealers facing a choice between suspending operations and trading at substantial losses.

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

The associations called on independent petroleum operators to suspend purchases of products priced above EPRA’s gazetted wholesale limits.

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

“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 said.

The associations urged the ministry and EPRA to resolve the dispute.

Meanwhile, EPRA Director-General Edward Mwirigi Kinyua attributed rising fuel prices to market turmoil linked to the Middle East conflict. He said international petrol prices had risen to about $1,300 per tonne from roughly $600 earlier in the crisis.

Kinyua also said the kerosene price adjustment was partly intended to narrow its price gap with automotive fuels, reducing the incentive to adulterate petrol and diesel with cheaper kerosene.