The Energy and Petroleum Regulatory Authority (Epra) will next week commence engaging stakeholders on reviewing pipeline transportation and storage tariffs of imported fuel, a move that could have an impact on the pump prices.

This follows two separate applications by Kenya Pipeline Company (KPC) dated January 2022 and 18th July 2022 requesting the amending of storage charges paid by oil marketers. Revised charges are expected to run for 3 years until 2025 as KPC pushes to boost its financial books.

Capital expenditure

The requests by KPC took into consideration capital expenditure provisions for capacity enhancement of the eastern (Mombasa-Nairobi) section of the pipeline and the proposed revised throughput forecast.

“Accordingly and pursuant to the Statutory Instruments Act No.23 of 2013, EPRA will embark on public and stakeholders consultations with a view to receiving comments on the tariff application,” EPRA Director General Daniel Kiptoo said in a public notice yesterday.

The public engagement will be conducted in Kisumu, Eldoret, Nakuru, Mombasa, and Nairobi between 22nd August and 7th September.

The energy regulator had in August last year slashed KPC’s cumulative handling and storage fees by about 44 per cent, from $5.18 (sh616) to $3.59 (sh427) per cubic metre of fuel in a bid to reduce the cost of pump prices, something that strained KPC bottom line.

This was expected to increase to $3.93 (Sh468) from July 2022 and further by 0.25 (Sh30) from July 2023. Storage charges and distribution costs are usually factored in the pricing of fuel, implying that any upward amendment will increase the retail prices of diesel and petrol.

Kenya Pipeline Company has the responsibility of transporting, storing and delivering petroleum products to the consumers of Kenya through its pipeline system and oil depot network.