The Energy and Petroleum Regulatory Authority (EPRA) in Kenya has issued a statement cautioning fuel dealers who are hoarding petroleum products in anticipation of a hike in prices in the country soon.

In the released statement on Monday, the authority acknowledged that it had received several complaints and intelligence on the shortage of petroleum products, despite the agency’s knowledge of adequate petroleum products in the country.

The statement read, “A number of Oil Marketing Companies (OMCs) are deliberately holding back sales to non-franchised petroleum retailers otherwise known as independents, in anticipation of a price increase.”

It also added that the OMCs and petroleum retail station dealers had been warned that any individual or company caught in the act of deliberately hoarding petroleum products would be liable to a fine of not less than Sh1 million, a term of imprisonment of not less than one year, or both.

The authority said that it would permanently revoke the licenses of culprits found breaching the provision of the Petroleum Act No.2 of 2019, Section 99(1) (k). The Act recommends penalties for a hoarder, who could be the owner or operator of a bulk storage facility for petroleum products, service station or storage depot, or the owner of any petroleum stocks.

In May, the Authority, through the Kenyan Ministry of Energy, rejected a petition by marketers of oil for the exclusion of cheaper fuel during the monthly review, a move that was intended to deny people access to cheaper crude prices.

The marketers wanted the review of retail prices to be based on the cost of crude in March for $35.58 a barrel, and not the April average of $26.63 due to the fall in oil prices. The marketers said that they were not able to sell some of the expensive fuel due to COVID-19 restrictions.