Traders involved in the supply and distribution of fuel in Kenya risk attracting heavy fines for hoarding the commodity in order to manipulate prices.
As many regions continue to report fuel shortage, the Competition Authority of Kenya (CAK) has issued a warning to Oil Marketing Companies (OMCs) who are involved in supply, distribution, and retail of petrol, diesel, kerosene and Jet A-1 against engaging in hoarding to cause artificial shortage contrary to the Competition Act.
“Fuel is an essential commodity that underpins economic activity and public welfare. Any deliberate attempt by suppliers, distributors, or retailers of fuel products to withhold supply from the market to create artificial scarcity, manipulate prices, or gain unfair commercial advantage is a prohibited practice under the Act,” said David Kemei, CAK Director General.
On Friday, transport was disrupted after fuel shortage hit Laare town in Meru County as motorists failed to purchase the commodity.
Reports indicate that most fuel stations within the town have run out of stock, leaving motorists, public service vehicle operators, and bodaboda riders stranded.
Since Monday, many towns across the country have reported fuel shortage despite assurances by the government that the country has sufficient stock to meet the current demand.
According CAK, there are indications that some OMCs may be hoarding fuel products or declining to supply non-franchised petroleum retailers in anticipation of a price increase.
“Take notice that such conduct may attract a financial penalty of up to 10pc of an undertaking(s) preceding year’s gross annual turnover in Kenya. Additionally, the undertaking found to have breached the Act are liable, upon conviction, to imprisonment for a term not exceeding five years or to a fine not exceeding Ksh 10 million,” added Kemei.
Official data indicate that the country currently has 166,595 litres of super petrol, 182,508 litres of diesel and 82,434 litres of jet fuel in stock.
