Kenyan Fuel Dealers Urge Members to Halt Purchases Amid Pricing Disputes
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What happened
The Petroleum Outlets Association of Kenya and the Kenya Independent Petroleum Dealers Association issued a joint communiqué urging members to cease buying fuel from oil marketing companies that charge above wholesale caps set by EPRA. The associations stated that OMCs had been selling above the caps since October 15, leaving independent stations facing imminent stock-outs.
From kenya-today.com
Why it matters
The over-charging by OMCs erodes the dealers’ allowable margin, which is roughly KES 15 per litre, potentially forcing stations to operate at a loss or shut down. While EPRA Director General Edward Kinyua wrote to OMC chief executives promising compensation for excess volumes, the letter did not address the dealers’ complaint.
The situation relates to oversight of petroleum supply chain irregularities involving the Ministry of Energy and Petroleum and Kenya Pipeline Company.
From kenya-today.com