EPRA warns oil firms over fuel hoarding

The Energy and Petroleum Regulatory Authority (EPRA) has issued a warning to oil marketing companies (OMCs) over alleged hoarding of petroleum products and breach of wholesale price caps, amid reports of an artificial fuel shortage in the country.

In a directive addressed to chief executive officers of OMCs, EPRA said it had received credible reports indicating that some firms were deliberately withholding fuel supplies from independent retailers in anticipation of a price increase.

“Preliminary investigations indicate that some Oil Marketing Companies are deliberately holding back sales to non-franchised petroleum retailers, otherwise known as independents, in anticipation of a price increase,” EPRA acting Director General Joseph Oketch said.

The regulator noted that the country currently has sufficient petroleum stocks, dismissing claims of a genuine shortage. It referenced an earlier communication dated March 18, 2026, on operational stock levels and maintained that the supply situation remains stable.

“This practice is tantamount to hoarding and is an offence under Section 99(1)(k) of the Petroleum Act,” Oketch said, adding that firms found culpable risk severe legal consequences.

EPRA also accused some companies of charging ex-depot or wholesale prices above the prescribed caps, in violation of Section 99(1)(n) of the same law.

“OMCs found to have sold petroleum products above the recommended ex-depot or wholesale prices shall have committed an offence and shall, on conviction, be liable to a fine of not less than Sh10 million, or a term of imprisonment of not less than five years, or both,” the authority warned.

The regulator further cautioned that companies involved in hoarding face a minimum fine of Sh1 million or imprisonment for at least one year, or both, upon conviction.

EPRA said it would not hesitate to revoke operational licences of firms found engaging in illegal practices.

“Additionally, EPRA shall not hesitate to permanently revoke the operational licences for OMCs who will have committed the aforementioned offences,” Oketch stated.

The directive has also been copied to Energy Cabinet Secretary James Opiyo Wandayi and Kenya Pipeline Company acting Managing Director Pius Mwendwa.

The move comes amid growing concern from independent fuel retailers who in recent days have complained of limited access to supplies, raising fears of market manipulation.

EPRA has urged all OMCs to comply strictly with regulations and maintain fair supply practices to ensure stability in the petroleum sector and protect consumers from unjustified price increases.