EPRA issues alert to oil companies on fuel hoarding risks
By Aloys Michael, April 9, 2026The Energy and Petroleum Regulatory Authority (EPRA) has intensified action against oil marketing companies allegedly creating artificial fuel shortages and driving up prices, despite the country maintaining sufficient petroleum reserves.
In a directive issued on Wednesday, April 8, 2026, EPRA revealed it had received complaints that certain marketers were intentionally withholding fuel and limiting supply to independent retailers, seemingly in anticipation of a price hike.
The regulator noted that preliminary investigations had established that certain Oil Marketing Companies (OMC) were withholding sales to non-franchised dealers, a move it termed unlawful and punishable under the Petroleum Act.
EPRA further revealed that some firms were also charging ex-depot or wholesale prices above the set regulatory caps, compounding the crisis being experienced across the country.
“This practice is tantamount to hoarding and is an offence under Section 99(1)(k) of the Petroleum Act No. 2 of 2019 (Cap 308). Further, EPRA has found out that a number of OMCS are charging ex-depot or wholesale prices higher than the recommended caps, which is also an offence under Section 99 (1)(n) of the Petroleum Act,” read part of the letter signed by EPRA acting DG Engineer Joseph Oketch.
The authority warned that companies found guilty of hoarding petroleum products risk fines of at least Ksh1 million, imprisonment for a minimum of one year, or both.
Additionally, those found selling fuel above the recommended wholesale prices face stiffer penalties, including fines of no less than Ksh10 million or jail terms of up to five years.
EPRA cautioned that it would not hesitate to revoke the operational licences of companies found engaging in unlawful practices, signalling a tough regulatory stance.
The crackdown comes at a time when motorists across the country are grappling with a worsening fuel shortage, with long queues forming at petrol stations amid dwindling supplies.
In Nairobi, most stations remain operational, but operators warn that existing stocks could run out within days as deliveries slow and panic buying intensifies.
In areas like Nyamira and Kericho, the fuel situation remains challenging, with numerous stations closing and others operating with limited supplies, forcing drivers to travel long distances to find petrol.
Some outlets have resorted to selling only high-octane fuel, with prices approaching Ksh200 per litre, well above standard rates, sparking frustration among consumers.
However, the Kenya Pipeline Company (KPC) insists that the country has adequate fuel reserves, rejecting claims of a nationwide shortage. KPC confirms that its depots and terminals are fully stocked, with ample supplies of petrol, diesel, and jet fuel to satisfy both current and anticipated demand.