This archive report was first published on 9 June 2020.
On June 9, 2020, the Energy and Petroleum Regulatory Authority (EPRA) issued a stern warning to oil marketing companies (OMCs) and retail station dealers found to be hoarding petroleum products.
According to EPRA Director-General Pavel Oimeke, preliminary investigations indicate that a number of OMCs are deliberately holding back sales to non-franchised petroleum retailers in anticipation of a price increase.
“The country has sufficient petroleum stocks. However, preliminary investigations indicate that a number of OMCs are deliberately holding back sales to non-franchised petroleum retailers in anticipation of a price increase,” said Mr. Oimeke.
EPRA will invoke the Petroleum Act No. 2 of 2019 to address the issue, which forbids hoarding of petroleum products. Condition no. 15 of the Import, Export and Wholesale of Petroleum Products License and the Retail of Petroleum Products License also bars OMCs and other petroleum products retailers from engaging in activities intended or likely to disrupt or interfere with competition.
“OMCs and petroleum retail station dealers found to have committed the offence of hoarding shall be prosecuted in accordance with the law and their operating licenses permanently revoked,” he warns.
EPRA is also calling on Kenyans to report any suspicion of hoarding by oil marketers that prevents Kenyans from accessing fuel like they would have otherwise normally accessed.
