Kenya Fuel Retailers Face Shortages Amidst Middle East Tensions. Nairobi, Kenya — Kenya’s independent fuel retailers are facing severe shortages due to the ongoing conflict in the Middle East, according to Martin Chomba, chairman of the Petroleum Outlets Association of Kenya (POAK). Approximately 20% of the country’s fuel outlets are affected as a result of the war, with Chomba predicting a full-blown crisis in two weeks unless the situation in the Middle East stabilizes.
Kenya’s fuel supply is entirely dependent on imports from the Middle East, primarily through government-to-government deals with Gulf crude producers and refiners.
The disruptions have been exacerbated by the Energy and Petroleum Regulatory Authority (EPRA) freezing pump prices despite the rise in global oil costs. “We have constrained supply, “Chomba explained. “.
So far, about 20 per cent (of some 3,100 retailers) are affected.
In two weeks, it will be a total crisis with no fuel in most outlets if the tension in the Middle East continues.”
On March 14, the EPRA decided to leave pump prices unchanged for the next 30 days, despite the surge in international crude oil prices.
This decision has been met with criticism from POAK, which has been urging authorities to end government — to-government deals and allow fuel marketers to purchase products from private suppliers as a contingency measure. EPRA Director General Daniel Kiptoo Bargoria told Reuters that Kenya had “sufficient stocks “and would issue a statement later in the week.
However, local reports indicate that the current situation is causing concern among consumers and fuel retailers alike.
A ruling party lawmaker, Nelson Koech, warned of “speculation, panic buying, and hoarding. Particularly hoarding by oil marketers in anticipation of a price jump, “which has seen demand for fuel jump over the past two weeks.
The situation highlights the vulnerability of African countries to global supply disruptions and price fluctuations, especially in light of the Middle East conflict, which has nearly halted shipments of about one — fifth of the world’s oil and liquefied natural gas through the Strait of Hormuz.
Further details are expected as the situation develops.
