Higher fuel prices loom as KPC plans tariffs raise

Epra fuel prices review

The Energy and Petroleum Regulatory Authority had in June 14, 2022 announced a Sh9 rise in fuel prices in its monthly review.

Photo credit: Nation Media Group

Kenyans could be hit with higher fuel prices over the next three years should the Kenya Pipeline Company (KPC) be given the nod to increase the transportation and storage tariffs for the products.

The Energy and Petroleum Regulatory Authority (Epra) says KPC has applied for a review of the transportation and storage tariffs for the period 2021/22 to 2024/25.

Epra said KPC aims to use revenue from the proposed tariff – initially submitted in January and amended last month – to partly fund the enhancement of the firm’s pipeline between Mombasa and Nairobi.

KPC contracted Lebanese firm Zakhem International Construction for the multi-phased construction of the 450-kilometre oil pipeline at a cost of Sh48 billion in July 2014.

“In January 2022, Epra received an application from KPC for the review of the pipeline transportation and secondary storage tariffs of the period 2021/22 to 2024/25,” said Epra Director-General Daniel Kiptoo (below) in a notice.

“KPC further submitted an amended tariff application dated July 18, 2022 taking into consideration capital expenditure provision for capacity enhancement of the eastern (Mombasa-Nairobi) section of the pipeline and the proposed revised throughput forecast,” he said.

Epra did not disclose the contents of the tariff application but said it would be made available for public scrutiny starting next

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