Total loses largest local oil market share

Total Kenya is the biggest domestic market share loser for the three months to September. Shell and Kenol Kobil, shed a combined 2.8 per cent market share.

The Petroleum Institute of East Africa say that Total lost 1.3 per cent to close the period at 16.7 per cent and retain its position as the country’s top oil marketer.

Vivo, which trades as Shell, is ranked second having shed 1.2 per cent to have a 16.6 per cent share while Kenol Kobil shed the least share (0.3 per cent), ending the period with 15.2 per cent.

Gulf Energy, a small oil marketer which has been in the country for a decade, was the only oil firm among the top seven companies to gain market share in the period under review, underlining a shift in the industry.

The oil company has grown rapidly over the years and now runs fuel stations in most major towns in the country. It also has a presence in Uganda.

“Kenya fuel consumption increased by approximately 20 per cent up to September this year compared to the same period last year,” said Wanjiku Manyara, petroleum institute’s general manager.

Kenya’s top-three oil market rivals are competing on customer convenience and wider distribution to increase sales. Kenol Kobil is also running a promotion and discounts on their loyalty cards. A wider footprint is critical in driving sales of products such as diesel, petroleum and kerosene to motorists and households.

The bigger oil marketers have more retail outlets than their smaller rivals.

State price controls have tamed price wars among the fuel companies, making market presence and strategic locations key factors in winning customers who don’t have to seek bargains at various outlets.