Kenya Pipeline Wants Regulator to Hike Fuel Tariff by 38%
The Energy and Petroleum Regulatory Authority (EPRA) has revealed that it received recommendations from the Kenya Pipeline Company (KPC) suggesting the increase of fuel tariffs from 0.45 cents per litre to 0.62 cents.
The tariff hikes will garner higher revenues that will be channeled towards upgrading KPC’s storage and handling infrastructure amidst the glaring cash crunch. KPC urged the regulator to consider these recommendations when reviewing fuel prices for the month of October, a proposal that stakeholders in the fuel industry have repudiated as ‘factors for higher costs at the pump’.EPRA’s Deputy Director of Price Analysis, Tariffs, and Competition – Waweru Karanja – assured the oil traders that the tariff changes would not affect fuel prices.Karanja said that KPC needed to ramp up its unloading equipment at the port to hasten operations. He added that delays in the process result to higher demurrage fees every day.
Oil stakeholders have reiterated that higher tariffs will automatically be transferred to the consumer at the pump. In last month’s fuel review, EPRA maintained August pump prices at KSh 188.84 for Petrol, KSh 171.60 for Diesel, and KSh 161.75 for Kerosene.
Motorists were expecting a reduction in fuel prices due to falling oil prices and OPEC’s nod to increase supply. The prices remained unchanged because EPRA disobeyed court orders to halt the inclusion of the Road Maintenance Levy, which was hiked by seven shillings.