This archive report was first published on 10 June 2020.
Published on June 10, 2020, the Energy and Petroleum Regulatory Authority (EPRA) has cautioned oil marketing companies (OMCs) against hoarding petroleum products to create artificial shortages.
According to EPRA, individuals or companies found guilty of hoarding will face severe consequences, including a fine of not less than one million Kenya Shillings, a jail term of not less than one year, and the permanent revocation of their licenses.
The move by oil marketers to hold back sales to independent retailers in anticipation of a price increase has been reported in Western Kenya, where artificial shortages have been observed.
Speculations of increases in oil prices in the country are fueled by the uptick in global prices, with the recent announcement by OPEC+ to extend output cuts driving oil prices past the $40 mark, its highest price for the past three months.
As a result, oil marketers have called for higher prices, citing expensive inventory from previous months. However, this move has been met with warnings from EPRA, emphasizing the need for fair and transparent business practices.
