Chairperson of the Petroleum Outlets Association of Kenya Martin Chomba says the fuel shortages reported in parts of the country are not caused by lack of product, but by supply constraints and market reactions that are disrupting distribution, leaving many stations dry despite adequate national reserves.
Speaking on Radio Generation on Tuesday, Chomba said the structure of fuel allocation is uneven, with independent dealers—who account for about 68 per cent of petrol stations—receiving limited supplies. He noted that this imbalance is triggering panic buying among consumers and rapid depletion of stocks at retail outlets.
He pointed out that the margins earned by fuel dealers remain very low, with retailers making only between Sh44 and Sh50 from a Sh2,000 sale. According to him, such returns are too thin to sustain operations, especially under a pricing cycle that exposes traders to financial risk.
“You sell this product at this price, then next month, you go back to the bank, you get some more money, because the prices will be up,” he said, adding that the pricing cycle often leaves retailers exposed to market volatility.
Chomba further explained that even stations handling large volumes are not spared, saying outlets that sell up to 5,000 litres a day can run out of fuel within hours due to supply bottlenecks and uneven distribution.
“And so they will be stocked out,” he noted, warning that such shortages are often perceived as national scarcity even when reserves exist.
He said the dominance of major oil marketers in the supply chain has limited access for smaller stations, especially in rural and peri-urban areas, creating a system where availability depends on allocation rather than actual stock levels.
This, he said, fuels what he described as “artificial shortage,” driven more by consumer behaviour and fear than by real supply gaps.
“Before you know it, in two hours time that product is done,” he said, adding that repeated stock-outs fuel consumer anxiety and worsen demand spikes across regions.
His remarks come at a time when motorists in Nairobi and nearby counties have reported long queues at petrol stations amid fears of supply disruptions.
The Energy and Petroleum Regulatory Authority has previously linked such situations to panic buying and possible hoarding by some oil marketing firms, maintaining that the country has enough fuel in storage.
Energy Cabinet Secretary Opiyo Wandayi on Monday told the National Assembly’s Energy Committee that current stock levels are sufficient to meet demand in the short term.
“I want to assure Kenyans that there is no shortage of fuel. As of today, we have 183,318 cubic metres of petrol and 152,750 cubic metres of diesel.” he said.
“There is no shortage of fuel in the country. If there is any shortage, it has been caused by oil market players,” Wandayi added.
The government has been using structured import systems, including government-to-government deals, to ease pressure on foreign exchange and maintain steady fuel supply.
However, Chomba maintained that unless fairness in allocation and distribution is addressed, the country will continue to face recurring local shortages, even when overall stock levels remain stable.