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Home » Gov’t Says Unauthorised Super Petrol Imports Would Have Raised Prices by Ksh.14

Gov’t Says Unauthorised Super Petrol Imports Would Have Raised Prices by Ksh.14

Deborah Wando by Deborah Wando
6 months ago
in Economy
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Gov’t Says Unauthorised Super Petrol Imports Would Have Raised Prices by Ksh.14

File image of Energy & Petroleum CS Opiyo Wandayi. PHOTO| COURTESY

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The government has ordered One Petroleum Ltd to withdraw invoices and export a consignment of super petrol imported outside the government-to-government framework. Officials said the shipment posed a risk to fuel supply stability and would have significantly increased pump prices. The Ministry of Energy and Petroleum issued a press release on April 7, 2026, detailing the directive.

Kenya entered into master framework agreements on March 10, 2023 for the supply of super petrol, diesel and jet fuel under a G-to-G arrangement. The partners include Aramco Trading, Fujairah FZE, ADNOC Global Trading Limited and Emirates National Oil Company (Singapore) Private Limited. The Petroleum (Importation) Regulations, 2023 anchor this arrangement.

The ministry said the G-to-G framework has supported steady supply of refined products locally and regionally. It has also helped protect foreign exchange stability. Additionally, the arrangement has enhanced price stability and maintained product quality along the supply chain.

Unauthorised Super Petrol Imports Posed Price Risks

However, the ministry noted that a 60,000-metric-tonne consignment of super petrol recently entered the country. The shipment arrived “in contravention of the procedures” set out under the G-to-G contractual framework with international suppliers. The ministry stated that the shipment carried a price tag of Ksh198,000 per metric tonne.

By contrast, the G-to-G arrangement offers super petrol at Ksh140,000 per metric tonne. The difference amounts to an increase of Ksh58,000 per metric tonne. Officials calculated that this disparity would have resulted in an approximate rise of Ksh14 per litre in pump prices on that consignment alone. The government moved quickly to block the potential price hike.

“Consequently, the Government, through the Ministry of Energy and Petroleum, and in addition to the measures already undertaken, has now directed that” specific actions take place, the statement read. The ministry identified One Petroleum Ltd as the importer that brought the product and invoiced oil marketing companies. The government directed One Petroleum to withdraw all invoices immediately and raise credit notes.

The ministry further directed that oil marketing companies should neither pay the invoices nor uplift product from the consignment. It also ordered One Petroleum to exit the product out of Kenya as soon as possible. The Energy and Petroleum Regulatory Authority (EPRA) received instructions to subsequently exclude the product from the monthly computation of petroleum product costs.

Government Vows to Protect Consumers from Unauthorised Super Petrol Imports

The government said it would remain vigilant to ensure no individual, company or stakeholder engages in artificial shortages or unjustified price increases. Officials emphasized that protecting consumers remains a top priority. The public will continue to receive updates on fuel prices in the usual manner.

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This incident highlights ongoing tensions between Kenya’s regulated fuel import framework and independent importers. The G-to-G arrangement, introduced in 2023, aimed to stabilize the domestic fuel market after months of volatility. It has generally succeeded in keeping prices predictable. However, unauthorized super petrol imports threaten to undermine that stability.

Energy and Petroleum CS Opiyo Wandayi has consistently defended the G-to-G framework. He argues that bypassing the system creates risks for both supply security and pricing. The latest directive sends a clear message to other importers considering similar moves.

Industry observers note that the Ksh14 per litre increase would have hit consumers hard. Kenyan households already spend a significant portion of their income on fuel and transportation. Any additional rise would have triggered cascading effects on food prices, public transport fares, and overall inflation.

EPRA will continue monitoring the market for any further unauthorized super petrol imports. The regulator has the authority to impose penalties on companies that violate importation regulations. For now, the government maintains that the G-to-G arrangement remains the sole approved channel for bringing super petrol into the country.

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