The Fuel Oil Wholesale Licence authorizes businesses to engage in the bulk distribution and supply of fuel oils, including heavy fuel oil, marine fuel oil, and industrial fuel oils. This licence, issued by EPRA, is critical for supporting Kenya’s industrial, maritime, and power generation sectors.
Licence Application Process
Applications are submitted through EPRA’s online portal under the Fuel Oil Wholesale category. The process includes verification of storage capacity, distribution networks, and technical capabilities to handle fuel oil products safely and efficiently.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. The fuel oil wholesale licence falls under EPRA’s fee-free licensing policy for all petroleum business activities.
Documentary Requirements
Required documentation includes:
- Standard business registration and compliance certificates
- Proof of adequate storage capacity for fuel oils
- Distribution network details and agreements
- Product handling and safety procedures
- Quality control systems and testing facilities
- Environmental management plans
- Customer base and supply contracts
- Technical specifications for fuel oil handling equipment
Cost Considerations
Indirect costs for fuel oil wholesale operations include:
- Specialized storage tanks for heavy oils
- Heating and handling equipment for viscous products
- Quality testing laboratories
- Distribution fleet or third-party logistics contracts
- Product liability insurance
- Environmental compliance infrastructure
- Industry-specific certifications
Regulatory Framework and Penalties
Fuel oil wholesale operators must comply with EPRA regulations and industry standards. Illegal wholesale of fuel oil without a licence attracts a minimum fine of KSh 1 million. Additional penalties may apply for environmental violations or quality control failures.
The fee-free licensing for fuel oil wholesale, combined with the growing demand from Kenya’s industrial and power sectors, presents opportunities for specialized operators. The regulatory framework ensures that only businesses with the appropriate infrastructure and technical capabilities can handle these specialized petroleum products safely and efficiently. With proper investment in facilities and compliance systems, businesses can establish profitable operations in this niche market.
