Kenya Pipeline is pushing for an increase in the tariffs paid by Oil Marketing Companies for the use of its facilities, which could drive up fuel prices even further.
Following Kenya Pipeline Company’s review application, the Energy and Petroleum Regulatory Authority (EPRA) has begun a stakeholder engagement process (KPC).
In order to recoup the funds spent on building the new 450-kilometer, 20-inch pipeline that runs from Mombasa to Nairobi, the company is seeking higher fees from oil marketing companies.
KPC currently charges Sh3.36 per litre of product transported between Mombasa and Nairobi.
In the 2022/23 cycle, the proposed new tariffs set transport charges at 3.87 cents per cubic meter, per kilometer.
This will rise to Sh4.09 per cubic metre next year before falling to Sh4.06 in 2024/25.
Storage and handling fees of Sh874.44 per cubic metre have been proposed, up from Sh696.85. In 2023/24, it will rise to Sh960.09 per cubic metre.
Yesterday, EPRA kicked off stakeholder engagement in Kisumu.
“The revised charges are expected to run for three years until 2025,” director general Daniel Kiptoo said, adding that the authority is committed towards improving efficiency in Kenya’s petroleum sub-sector.
Other engagements will be held in the Aberdare’s Economic bloc, Coast region and Nairobi.
An increase in tariffs is likely to push up the cost of fuel in the country as OMCs pass the extra costs to consumers.
