Engen has struck a large supply deal in Africa with the Kenya Independent Petroleum Dealers Association (KIPEDA), paving the way for a fairer pricing system in Kenya.
Under the deal, the company will supply fairly priced fuel and lubricants and technical support to service station operations, to independent dealers with no links to motor oil companies. The move will end unfair and discriminatory trade practices at depots as well as erratic supply, thereby safeguarding indigenous Kenyan petroleum enterprises. "The deal assures Kenyan independents and indigenous businesses of efficient and easy access to quality petroleum products, at a fair and competitive price" said Engen Kenya's MD.
Independent local Kenyan dealers currently operate more than 500 sites - making up half of the retail petroleum sector and KIPEDA's chairman, Engineer Kariuki, saw a way to leverage the strength of its members to its collective benefit by suggesting the strategic partnership with Engen. "The deal will help us overcome erratic fuel and lubricants supply, uneconomic price margins, lack of access to quality products and other constraints," he added.
The agreement makes group the largest oil retailer in East Africa's biggest economy.
The group is also the official oil partner at PetroForum Africa - a business networking event for the petroleum retail industry - which takes place in Cape Town, 4-6 March 2013.