The Petroleum Outlets Association of Kenya (POAK) refuted claims that the country had run out of fuel stock on Tuesday, March 7.
The dealers attributed the shortage experienced in some parts of the country to artificial hoarding by a section of oil marketers.
This was after reports emerged alleging a shortage of the product ahead of the review by Energy and Petroleum Regulatory Authority (EPRA) on Tuesday, March 14.
"It's an artificial problem. There are sufficient products in the country," the Petroleum Outlets Association of Kenya stated.
Their response came after motorists claimed that several filling stations across the city had turned them away due to the lack of fuel.
"Is there a fuel shortage in Nairobi? Most major stations have no petrol," Njiru West posted on Twitter.
"Oil marketing companies playing cat-and-mouse games with motorists as fuel shortage bites. Price hikes expected or is this another subsidy war?" Richard Wanjohi also questioned the alleged shortage.
By the time of this publication, Kenya Pipeline Company (KPC) and EPRA had not issued a statement regarding the alleged looming fuel shortage.
Reports by local media publications also indicated that dollar shortages had occasioned the fuel shortage in some outlets in Nairobi.
Oil dealers, like other importers, rely on dollars to make payments for their shipments and the parallel exchange rates from banks had exposed them to losses.
EPRA compensates the dealers based on the printed official exchange rates. Demand for dollars locally picked up due to a surge in imports following the full reopening of the economy.
Despite the surge in dollar demand, in February, EPRA maintained the price of super petrol at Ksh177.3 per litre. The cost of diesel and kerosene was maintained at Ksh162 and Ksh145.95 per litre, respectively, at the pump.
"The prices are inclusive of the eight per cent value-added tax in line with the provisions of the Finance Act 2018," the statement read in part.
"The price of diesel has been cross-subsidized with that of petrol while a subsidy of Ksh19.41 per litre has been maintained for kerosene to cushion consumers from the otherwise high prices," EPRA added.
However, the government is staring at high landing costs after Russia announced plans to cut the global oil supply by 500,000 barrels per day.
