Kenya is facing mounting concerns over fuel supply after several retail stations reported intermittent shortages, even as authorities and industry players downplay the risk of a nationwide crisis.
Vivo Energy Kenya, which operates Shell-branded outlets, confirmed erratic fuel supply at several stations, including those in Kipande House and Kiserian. The disruptions followed a surge in demand after a long holiday weekend that quickly depleted available stocks.
Chief executive Peter Murungi said the situation was temporary, attributing the shortages to increased consumption rather than structural supply issues. He added that replenishment efforts were already underway to restore normal supply levels.
Spot checks, however, showed some stations had run out of diesel while petrol stocks remained limited. Several outlets have since introduced rationing measures, with others prioritising cash transactions to manage dwindling reserves.
The supply concerns come amid growing pressure from petroleum dealers demanding an increase in regulated fuel prices. Dealers, through the United Energy Petroleum Association, have warned they could halt fuel deliveries by the end of the month if pricing adjustments are not made.
Petrol prices in Nairobi remain capped at KSh178.28 per litre despite global oil prices rising above USD119 per barrel. Dealers argue that the current pricing formula does not reflect the increased cost of imports and distribution.
They are now urging the Energy and Petroleum Regulatory Authority to revise pump prices in its next monthly review to prevent further strain on supply chains.
Global tensions disrupt oil supply chains
Kenya fuel supply challenges are linked to ongoing geopolitical tensions in the Middle East, which have disrupted refinery operations and shipping routes. The Strait of Hormuz, a key transit route for nearly 30% of global oil shipments, has been particularly affected.
These disruptions have forced importers to rely on smaller cargo shipments, contributing to inconsistent fuel availability across the country. Some vessels have delayed deliveries, while others have opted for longer alternative routes.
Under a government-to-government arrangement, Kenya imports fuel on a 180-day credit period from Gulf-based suppliers. However, reported attacks on oil infrastructure have raised concerns about the reliability of these supply lines.
Kenya continues to face challenges due to limited strategic fuel reserves. The country aims to maintain stocks sufficient for 90 days, but this target has not been met due to financial constraints affecting the National Oil Corporation.
Oil marketers are required to hold reserves lasting between 20 and 25 days, although many maintain stocks for only 15 to 18 days. This shortfall leaves the country vulnerable to prolonged supply disruptions.
Government officials maintain that there is no immediate shortage, attributing the situation to panic buying and hoarding. However, motorists remain concerned about possible price increases and longer queues ahead of the next pricing review.
