EPRA Puts Oil Firms on Notice Over Hoarding and Illegal Price Hikes

The Energy and Petroleum Regulatory Authority (EPRA) has issued a stern warning to oil marketing companies following reports of fuel hoarding and illegal price adjustments across the country. In a directive issued to the chief executive officers of these firms, the regulator flagged a growing trend of artificial shortages that have led to long queues at various retail outlets.

According to acting EPRA Director General Dr. Joseph Oketch, preliminary investigations show that several large marketers are deliberately withholding supplies from non-franchised retailers. These independent players, who rely on the primary marketers for stock, have reported restricted access to petroleum products. The regulator believes this is a calculated move to create an artificial deficit in anticipation of a potential price hike in the next review cycle.

This practice is a clear violation of Section 99(1)(k) of the Petroleum Act of 2019. Under the law, any company found guilty of hoarding petroleum products faces a minimum fine of Sh1 million. Convicted individuals or corporate officers could also face a prison term of at least one year. EPRA has made it clear that it will not tolerate market manipulation that targets vulnerable independent retailers.

Beyond supply restrictions, the regulator expressed concern over illegal pricing at the wholesale level. Some marketers are reportedly charging ex-depot prices that exceed the maximum caps set by the government. This breach of Section 99(1)(n) of the Petroleum Act carries much heavier penalties. Companies found to have sold products above the recommended wholesale prices face fines starting at Sh10 million or imprisonment for at least five years.

Dr. Oketch reassured the public that Kenya currently holds adequate petroleum stocks. The government maintains that there is no genuine shortage to justify the current situation at the pumps. The regulator has characterized the present supply disruptions as man-made,and intended to pressure the market.

In addition to financial penalties and jail time, the authority has threatened the ultimate administrative sanction. EPRA stated it would not hesitate to permanently revoke the operational licenses of any oil marketing companies found to be repeat offenders. This move would effectively bar such firms from participating in the Kenyan energy sector.

The warning comes at a time of heightened anxiety in the energy market. Motorists have reported significant delays and closed stations in several parts of the country. Many independent retailers have warned that their businesses are at risk if the supply chain is not restored to normal immediately.

EPRA has urged all players in the sector to strictly comply with the existing regulations to ensure market stability. The regulator’s monitoring teams have been deployed to track the flow of fuel from depots to retail stations. This oversight is intended to protect consumers from unjustified price increases and ensure that available stocks reach the market without delay.