Kenya fuel retailers running short of supplies amid Middle East war

Hundreds of fuel retailers in Kenya are running short of supplies due to the current war in the Middle East, a sector representative told Reuters.

About 20% of the country’s independent fuel dealers are affected, according to the chairman of the Petroleum Outlets Association of Kenya, Martin Chomba.

“We have constrained supply,” Chomba told Reuters. His association represents independent retailers, transporters and others, serving 68% of the national market.

“So far about 20% [of some 3,100 retailers] are affected…[in] two weeks it will be a total crisis with no fuel in most outlets if the tension in the Middle East continues,” he added.

Kenya obtains all its fuel supplies from the Middle East through government-facilitated deals with Gulf producers and refiners.

On March 14, the Energy and Petroleum Regulatory Authority, the state-run sector regulator, froze prices for petroleum products for the next 30 days, despite the spike in oil costs globally.

Kenyan fuel retailers said they are pressuring the authorities to allow them to source fuel from private suppliers.

Global oil prices jumped earlier in March as the war involving the United States, Israel and Iran disrupted transit through the Strait of Hormuz. About 20% of the world's oil supply usually passes through the strait.