Total maintains grip of fuel retail business
Total Kenya continues to hold the largest market share in the oil marketing industry.
According to the latest report from Petroleum Institute of East Africa (PIEA) Total holds 16 percent of the market attributed to its presence in almost every major town in the country.
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In the period ended December 2016 Vivo Energy came second at 15.9 percent, KenolKobil at 15.4 percent and Gulf Energy at 8.1 percent respectively.
While the top four marketing firms hold about 50 percent of the market share the remaining portion is spread across thirty other marketing firms.
PIEA chairman Powel Maimba said the demand of petroleum has seen consumption of petroleum energy increase by 7 percent to 6,323,405 in 2016 in comparison to 2015 which closed at 5,882,721.
“Total has been leading over the years because they have big retail network, they have been there longer than everybody. They have established customers both commercial and retail. They also participate in aviation, lubricant in exports and they are in every part of the industry,” said Mr Maimba.
Total also commands a market in the LPG market share closing at 20.3 percent, Hashi Energy at 16.4 percent and Lake Gas at 14.1 percent and KenolKobil closing at 11.8 percent.
PIEA analyst Kelvin Odundo said once the proposed amendments to the LPG and lubricants business segments growth is expected in investment and increase in demand as well.
“LPG prices were significantly low. Last month they were averaging at Sh1,976. This price was last seen in 2009 and it’s attributable to zero rating. Reforms are needed in the lubricants business segment. The amendment as proposed by the industry will not only enable the efficient management of the lubricants industry but further reposition Kenya as a lubricant manufacturer and exporter,” said Mr Odundo.