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The Petroleum Outlets Association of Kenya (POAK) has warned that hundreds of independent fuel stations are running low on supplies as the conflict in the Middle East continues to disrupt global oil shipments.
Approximately 20% of the country’s 3,100 retail outlets are currently affected, with industry leaders cautioning that a total national crisis could emerge within two weeks if tensions do not ease.
The shortage is being exacerbated by a recent decision from the Energy and Petroleum Regulatory Authority (EPRA) to freeze domestic pump prices, a move that prevents retailers from recovering the costs of increasingly expensive global crude.
The supply crunch is largely attributed to the near-total halt of maritime traffic through the Strait of Hormuz, a critical maritime chokepoint that typically handles one-fifth of the world’s oil and liquefied natural gas.
Kenya is particularly vulnerable to these disruptions because it sources its entire fuel supply from the Middle East through government-to-government contracts.
POAK Chairman Martin Chomba noted that “constrained supply” is already visible, and there are growing fears that dealers may begin hoarding remaining stocks in anticipation of a significant price hike when the current regulatory cycle ends next month.
In response to the mounting pressure, independent retailers are urging the government in Nairobi to terminate exclusive state-led deals and allow private suppliers to procure fuel as a contingency measure.
While some ruling party lawmakers have blamed the current scarcity on “panic buying and speculation,” EPRA officials maintain that the country still holds sufficient strategic reserves.
However, with international oil prices continuing to climb, the disconnect between global costs and regulated local prices remains a primary driver of the burgeoning energy crisis across the region.
