What You Need to Know
Energy Cabinet Secretary Opiyo Wandayi has mandated oil marketers to release hoarded fuel, labeling such actions illegal and detrimental to public interest. He emphasized the need for compliance with licensing obligations and warned of severe sanctions for violations, amid concerns over global supply disruptions affecting local fuel availability.
Africa-Press – Kenya. Energy Cabinet Secretary Opiyo Wandayi has ordered oil marketers to release hoarded fuel to the market, warning that withholding stocks is illegal and against public interest.
Speaking on Wednesday, CS Wandayi said the government is aware of reports that some oil marketing companies are holding back products in anticipation of price changes. He described such practices as “commercially opportunistic, counter to the public interest, and in direct breach of licensing obligations.”
“All licensed oil marketing companies are strongly reminded of their legal obligation to maintain continuous supply and release products at epigazetted prices,” he said.
CS Wandayi stressed that companies are fully aware of the conditions attached to their licences and must avoid “any unorthodox practices, any unethical practices, to take advantage of the current situation of the crisis that is currently unfolding in the world.”
He warned that violations would attract “very serious sanctions,” signalling strict enforcement measures against firms found hoarding fuel.
The directive comes amid concerns over global supply disruptions, which have affected fuel availability in some countries. The Energy Ministry has emphasised that, despite these challenges, the local supply position remains stable, and unethical practices by some traders threaten market stability.
The directive comes as fuel hoarding and rationing by major oil marketing companies have been blamed for creating shortages in Nairobi and other parts of the country. In a push for higher pump prices to boost profit margins, some dealers are threatening a nationwide supply cut.
The companies cite rising landed costs and operational constraints, despite most stocks having been shipped before the US and Israel-led attack against Iran began on February 28.
Kenya has a 45-day reserve capacity, according to Kenya Pipeline and the Energy and Petroleum Ministry.
A spot check by the Star noted panic buying in some stations as motorists rushed to fill tanks.
Taxi drivers and boda boda operators, who form the backbone of Nairobi’s daily commute, reported worsening conditions, accusing attendants of rationing supplies or selling selectively to customers willing to pay above regulated prices.
The Petroleum Outlets Association of Kenya (POAK) yesterday confirmed “heightened demand” due to panic buying.
POAK CEO John Njogu said, “Our stocks are lower than optimal. We are avoiding making comments that will increase the anxiety. We have fuel. But we shall have to reduce demand to avoid a shortage.”
The government says it will continue monitoring the situation to ensure that fuel reaches consumers at fair prices.
Kenya’s energy sector has faced challenges due to global supply disruptions, particularly following geopolitical tensions. The government maintains a 45-day reserve capacity to mitigate shortages, but recent hoarding practices by oil marketers have led to panic buying and accusations of rationing. The Energy Ministry is committed to ensuring fair fuel prices and stable supply despite these pressures. Historical fluctuations in fuel prices and availability have often prompted government interventions to protect consumer interests and maintain market stability.
