Fuel shortages are being reported in many parts of the country, with motorists struggling to find petrol as supply concerns grow. Long queues have become common at filling stations, while some outlets have closed temporarily due to lack of stock.
The situation has raised questions about distribution and pricing, even as new shipments continue to arrive at the coast.
A fresh fuel tanker has docked at the Port of Mombasa, offering some relief in what is quickly turning into a nationwide fuel crisis.
This now brings the number of vessels received in just two weeks to four, with another expected at the end of the month.
The latest is a vessel, Paloma, bringing in over 60,000 metric tonnes of fuel, docked even as consumers across the country report being turned away at petrol stations.
Despite these deliveries, many petrol stations remain dry. Oil marketing companies have been accused by smaller dealers of holding back fuel in anticipation of higher prices. Some major firms have admitted to shortages but say this is due to a sudden rise in demand, especially from rural areas where supply has been inconsistent.
The strain is being felt most by small fuel retailers, who form a large share of outlets across the country. They argue that large companies are selling fuel at near pump prices, leaving little room for them to make a profit. This makes it difficult for them to restock, forcing many to shut down temporarily even as demand continues to rise.
“When these guys who fuel the rural economy, they are the ones in charge of fueling boda bodas, and proboxes and sientas, basically the rural economy, when they don’t have product there is a lot of strain the mainstream franchise petrol station networks, and so it doesn’t matter the level of stock that they have, as long as the people in the villages don’t have fuel, they will all troop into towns and it becomes logistically impossible to fuel all these motorbikes,” said Petroleum Outlets Association of Kenya Chairperson Martin Chomba.“
Again, when they have to sell, they release that fuel at almost what we call the pump price, because they are trying to maximise their profits, remember EPRA has not given the wholesale cap so they will sell at what EPRA has gazetted which is the pump price.
If they sell at the pump price, the guy from the village cannot buy that fuel to go and sell because they must have a markup. They must have a margin,” said Chomba.
The Energy and Petroleum Regulatory Authority says it will support companies bringing in extra fuel to help stabilize supply. However, the uncertainty is already affecting other sectors.
The Ministry of Roads and Transport has warned airlines against raising fares too early, noting that aviation fuel stocks are still stable for now.
Even so, some airlines have announced plans to increase ticket prices starting April 1, citing expected higher fuel costs.
Industry players are now calling for changes in how fuel is sourced, including a temporary suspension of the current government-to-government deal to allow more flexibility until the situation improves.
