Nairobi — Oil marketing companies face fines and possible license cancellation after the Energy and Petroleum Regulatory Authority flagged cases of fuel hoarding and price violations.

In a notice to OMCs, EPRA Acting Managing Director Pius Mwendwa said investigations found some firms were withholding fuel supplies to create artificial shortages.

The regulator said the country has adequate fuel stocks, blaming the shortages on deliberate actions by some marketers who limited sales to independent retailers.

EPRA also accused several companies of charging ex-depot prices above the regulated caps, in breach of the Petroleum Act.

"Companies found hoarding petroleum products shall have committed an offence... and shall, on conviction, be liable to a fine of not less than Sh1 million or imprisonment of not less than one year, or both," the authority said.

It added that firms selling fuel above approved wholesale prices risk stiffer penalties, including fines of at least Sh10 million or jail terms of up to five years.

The warning follows reports of fuel shortages in parts of the country, with motorists queueing at stations amid concerns over supply disruptions linked to global market tensions.

EPRA said it will take enforcement action against non-compliant firms, including prosecution and revocation of operating licences.