Judge's gavel in courtroom - (Photo: Courtesy).

The Court of Appeal has intervened in a fuel distribution dispute, suspending an agreement between the governments of South Sudan and Kenya, known as a government-to-government framework, that granted Pacific Petroleum Company Limited exclusive import rights.

The injunction follows a public interest petition filed by Advocates Without Borders, which raised concerns about the arrangement and its impact on competition.

Speaking to Eye Radio, Advocate Ayei Peter Nyuol said the agreement gives Pacific Petroleum exclusive control over fuel imports, supply and marketing in South Sudan.

He argued that the deal was awarded through a single-source process without competition or public scrutiny, contrary to laws that guarantee fair competition.

Documents seen by Eye Radio show that the Ministry of Petroleum informed Kenyan authorities in November 2025 that petroleum products destined for South Sudan would be imported under a government-to-government framework through Pacific Petroleum.

The arrangement was later reinforced through official correspondence between the petroleum ministries of South Sudan and Kenya.

In a letter dated June 4, 2026, Pacific Petroleum said it had imported several fuel cargoes under the framework. The company said cargo RSS001 had already been discharged and transported to South Sudan, while RSS002 remained at the GAPCO terminal awaiting evacuation. A third shipment, RSS003, arrived at the Port of Mombasa on May 28 and was awaiting berthing.

Pacific Petroleum also accused some oil marketing companies of exporting fuel to South Sudan outside the approved framework and alleged that some cargo manifests had been altered to facilitate such exports. Eye Radio could not independently verify the claims.

The company said the government-to-government arrangement was intended to guarantee security of supply, transparency and efficiency in the fuel sector.

Following the complaints, Kenya’s Ministry of Energy and Petroleum requested the Kenya Revenue Authority to strengthen enforcement of the framework. The tax authority subsequently directed its operational units to increase scrutiny of petroleum export declarations and cargo manifests destined for South Sudan, warning that unauthorized exports outside the arrangement would face enforcement action.

Advocates Without Borders argues that the exclusive arrangement has reduced competition, limited consumer choice and contributed to higher fuel prices by forcing petroleum dealers to rely on a single supplier. The organization also says many fuel companies risk closure because they can no longer import fuel directly.

The court order halts implementation of the agreement pending determination of the case. The matter will proceed after the Ministry of Petroleum and other respondents are formally served and file their responses.

Ayei said the court will now determine the legality of the arrangement, adding that a ruling in favor of the petition could restore competition in the fuel sector and help reduce fuel prices.

Efforts to obtain comment from the Ministry of Petroleum, and Pacific Petroleum Limited were not immediately successful.