Wednesday, October 2, 2024 - The Kenya Pipeline Company (KPC) has elicited uproar after it made recommendations to the Energy and Petroleum Regulatory Authority (EPRA) requesting the authority to increase fuel prices to enable it to finance various infrastructure projects.
This was revealed by the Deputy Director of Pricing
Analysis, Tariffs, and Competition at EPRA Waweru Karanja.
According to Karanja, KPC wants EPRA to
increase the 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 would 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.”
“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 daily for all the time the trucks take to be
loaded with fuel,” Waweru Karanja explained.
The Joe Sang-led company 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 hurt 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.
The Kenyan DAILY POST
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