With the Energy Regulator (ERC) expected to announce reviewed fuel prices today, 14 August, 2012, a severe fuel ‘shortage’ has hit parts of western province. Based on the fact that latest statistics show that international crude oil prices are on an upward trend, a fact that might cause an upward review of fuel prices by ERC, one question looms, are fuel dealers hoarding stock in anticipation of a upward review or is the fuel shortage genuine?

As posted in the Daily Nation, long queues formed at several petrol stations as desperate motorists waited for their turn to refill, with fuel dealers claiming that they had run out of stock for the last two days.

This is not the first time parts of Kenya have experienced fuel ‘shortage’ hours or even days before ERC announced reviewed fuel prices. Hours before the 15 April, 2012 fuel price review, a spot check by the pesatalk team revealed that some oil dealers were turning away motorists, claiming that they had run out of stock. When fuel prices were reviewed, the retail price of super petrol increased to KES 118.50 per liter in Nairobi, up from KES 111.69 per liter in March.

A spot check in Butere, Mumias, Malava and Kakamega, by the Daily Nation, has revealed that fuel stations were not operating due to ‘lack of stocks.'

The previous fuel price review that saw the price of super petrol drop to KES 108.46 down from KES 117.67 resulted in some oil dealers refusing to lower fuel prices, claiming that they have old stock which they bought at a high price. There were also claims of fuel hoarding by some businessmen.

The price of different crude oil types has increased over the period between June 2012 and July 2012, it is thus expected that ERC will review fuel prices upwards. Fears that unscrupulous oil dealers could be hoarding their products are inevitable.