Fuel pumps in most parts of western Kenya have run dry as increasing demand associated with the festive season weighs on thinning supplies by major oil dealers.

Kisumu was by Tuesday the most affected with no petrol supplied since Christmas eve.

Other major towns including Eldoret, the greater Kericho and Kisii districts also had their supplies exhausted after marketers were said to have collected inadequate fuel products from the national distribution system on Christmas eve.

National pipeline officials owned up to delays in loading petrol for the Kisumu depots, but accused oil marketers of failing to replenish their stocks in time.

"Oil marketers last loaded on December 24. Our depots have been open through out but the marketers did not come for replenishments," said KPC's operations manager, Mr Philip Kimelu.

On Tuesday, however, KPC was preparing to load up to seven million litres (stocks to last for one week) for the Kisumu depot that serves the city and neighbouring Uganda.

"Kisumu which requires about one million litres of various products per day will receive seven million litres and Eldoret (five) to last for the next one week. Additional supplies will last each of them for one week," said Kimelu.

Most marketers contacted by the Business Daily declined to comment on the shortages and subsequent price hikes.

It also emerged that the oil dealers with few remaining stocks have raised fuel prices by between Sh3 and Sh5 due to supply shortages, sparking protests from motorists.

Most of the branded stations in the region were selling a litre of unleaded premium at Sh83.40, regular at Sh84.40 and diesel at Sh73.40.

The independent dealers were selling a litre of regular at Sh81.90 and diesel at Sh71.90.

In Nairobi, unleaded fuel is retailing at Sh87 a litre within the Central Business District (CBD) and neighbouring areas.

Marketers stand accused for hoarding petroleum products at a time when demand is high, as well as flouting market rules whenever demand peaks.

Nairobi and Mombasa account for nearly 60 per cent of the country's petroleum consumption.

Oil prices retreated to near $73 (Sh5,475) a barrel on Monday as Opec giants last week, indicated they would leave crude production levels unchanged while seeking to ensure compliance with members' output quotas by March, next year.

On December 1, international crude prices touched the record levels of $79.2 per barrel (159 litres), fuelling pressure at the pumps, having risen from $68 a barrel in October, when local pump prices stood at Sh81 per litre.

Supply bottlenecks have gripped the oil industry in recent months from break down at country's sole ageing refinery to capacity constraints at KPC.

Fears that the fuel prices are likely to increase further due to increased demand during the festive season were compounded by a recent rally in the prices for crude across major international markets.

Between January and June, the refinery has been facing technical challenges on its facilities used to produce petrol and cooking gas.