Fuel retailers across Kenya are beginning to run short of supplies following disruptions linked to the Middle East conflict.
The head of the country’s independent fuel retailers told Reuters that hundreds of dealers are already affected, with about 20% of outlets impacted after the regulator froze pump prices despite rising global oil costs.
Martin Chomba, chairman of the Petroleum Outlets Association of Kenya (POAK), said dealers may begin hoarding petroleum products as they anticipate higher consumer fuel prices next month.
African countries are particularly vulnerable to both supply shocks and rising costs, especially after the conflict effectively halted shipments of roughly one-fifth of the world’s oil and liquefied natural gas passing through the Strait of Hormuz.
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Kenya relies entirely on fuel imports from the Middle East through government-to-government agreements with Gulf crude producers and refiners.
“We have constrained supply,” said Chomba, whose association represents independent retailers, transporters, and other players serving 68% of the national market.
“So far about 20 percent (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.”
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Image Credit: Reuters
