Kenya Fuel Shortages: Iran War & Middle East Crisis Impact Supplies & Prices

Kenya Fuel Stations Face Shortages Amid Middle East Tensions

Hundreds of independent fuel stations across Kenya are experiencing shortages as the conflict in the Middle East disrupts global oil shipments, according to Martin Chomba, chairman of the Petroleum Outlets Association of Kenya (POAK). Approximately 20% of the country’s 3,100 fuel retailers are currently affected, with warnings that the situation could escalate into a full-blown crisis if regional tensions persist.

The shortages come as the Energy and Petroleum Regulatory Authority (EPRA) maintains a freeze on pump prices despite rising global oil costs, a decision that has created a disincentive for importers. Chomba cautioned that fuel dealers are anticipating price increases next month and may begin hoarding supplies in response. “So far about 20 per cent of some 3,100 retailers are affected… in two weeks it could become a total crisis if tensions in the Middle East continue,” he stated.

The Israel-Iran conflict, which began on February 28, has disrupted roughly 20% of global oil and liquefied natural gas shipments through the Strait of Hormuz, a critical waterway for energy transport. Kenya relies entirely on government-to-government imports from Gulf producers and refiners, making it particularly vulnerable to disruptions in this region.

Chomba has urged Kenyan authorities to allow fuel marketers to source supplies from private suppliers as a backup measure, arguing that the current reliance on government imports is insufficient. “The real shock is on the way,” he said. EPRA Director General Daniel Kiptoo Bargoria responded by stating that Kenya currently has “sufficient stocks” and promised a formal statement would be released.

Demand has increased in recent weeks due to panic buying and hoarding by fuel marketers anticipating a price jump, exacerbating the supply challenges. The impact of the conflict is being felt across Africa, with East and Southern Africa particularly vulnerable, importing approximately 75% of their refined fuel from the Middle East.

In South Africa, the National Treasury has warned of limited capacity to shield consumers from rising fuel prices, as crude oil costs have surged more than 40% to over $100 per barrel. Ethiopia has also taken steps to address the tightening supply, urging citizens to reduce fuel consumption.

Disruptions are impacting both shipping and production across the continent.