The Kenya Pipeline Company (KPC) has made recommendations to the Energy and Petroleum Regulatory Authority (EPRA) requesting the authority to increase fuel prices to enable it finance various infrastructure projects.
Waweru Karanja, the Deputy Director Pricing Analysis, Tariffs and Competition at EPRA revealed that KPC wants EPRA to increase fuel tariff by Ksh0.62 cents from Ksh0.45 cents per litre in order to finance the upgrades that KPC has embarked to improve storage and handling infrastructure.
Speaking after a meeting with various stakeholders, Karanja confirmed that EPRA had received KPC’s request but reiterated and assured Kenyans that any such proposals will not adversely affect pump prices.
“There are recommendations made by KPC that there is a shortage of unloading equipment at port which slows down operations,”
A fuel tanker getting fixed at a petrol station.
Photo
Handout
“KPC indicated they need to increase the capacity because if trucks or ships take too long at the port. As a result, we pay demurrage fees on a daily basis for all the time the trucks take to be loaded with fuel,“ Waweru Karanja explained.
The Pipeline company, a government parastatal noted the increased revenue from the tariffs will be used to purchase loading equipment thereby reducing fuel loading and unloading times at the Port of Mombasa.
Nonetheless, oil traders and various other stakeholders are opposed to the proposed increase in fuel prices noting that such a move will have a negative effect on the economy considering the fragile economic situation the country finds itself in.
Kenyans are also expected to resist any attempt to increase fuel prices based on the ripple effect that fuel prices have on the economy. Manufacturers and service providers are likely to pass on the added cost to consumers.
This comes after EPRA on September 14, maintained fuel prices in the latest review covering the period between September 15 to October 14, 2024.
At the moment, motorists are paying a maximum of Ksh188.84 for a litre of Super Petrol, Ksh171.60 for a litre of Diesel and Ksh161.75 for a litre of Kerosene.
The latest development also comes approximately two months after the High Court in Mombasa halted the government’s plan to increase the Road Maintenance Levy Fund (RMLF) by Ksh7.
A private citizen had moved to court earlier seeking to have the increase stopped arguing that enough public participation had not been conducted.
A photo of the busy Mombasa Port in Mombasa County, Kenya
Photo
KPA
