Independent oil marketers have raised concerns that wholesalers are supplying fuel to them at high prices despite the Energy Regulatory Commission announcing a price reduction last Saturday. This is threatening to create a shortage of fuel especially in regions serviced by independent fuel dealers countrywide, especially in rural and remote areas.

According to Kenya Independent Petroleum Dealers Association chairman Joseph Karanja, wholesale multinationals have not supplied Super petrol since July 14 when ERC announced a reduction on pump prices. Karanja says that wholesalers have been supplying diesel, kerosene and petrol to independent marketers at only KES 2.00 less than the ERC recommended retail price, a margin he says is used up in transportation costs.

In this regard, the small marketers have asked that ERC regulates wholesalers as well to protect their business. "ERC must include the wholesale price caps for us to meet the demand without defeating the sole purpose of introducing regulations. For it to make business sense, most of us will have to close shop or sell above the recommended price," said Karanja.

"We are being priced out of the market by the big multinationals slowly but surely while the ERC looks the other way," said Henry Mbaabu, managing director of Interlink Petroleum company to The Star. "We want the whole supply system addressed by the regulator with a formula that will determine reasonable wholesale prices for small dealers who offer the crucial services deep into the rural areas and informal settlements where no large players wish to venture".