Page 9 - DMEA Week 36 2022

DMEA PIPELINES DMEA

The Mombasa-Nairobi pipeline is part of KPC’s network (Image: KPC)

KPC wants to increase transport

and storage tariff for refined fuels

AFRICA KENYA Pipeline Co. (KPC) has submitted KES2.07 per litre to cover the cost of transport-
an application to the state energy regulator to ing petrol via the Mombasa-Nairobi pipeline.
increase the transport and storage tariffs that EPRA Director General Daniel Kiptoo said
petroleum product marketing companies pay. that the regulator would consider the reasons
KPC applied to the Energy and Petroleum given by KPC in applying for the tariff hike as
Regulatory Authority (EPRA) for a 13% increase well as the views presented by stakeholders,
in transport and storage tariffs to KES5.22 including consumers.
($0.04) per cubic metre per kilometre over the He said that EPRA has a dual mandate, main-
2022-23 financial year, compared to the current taining consumer protection but also consider-
KES4.61. ing the investments that different players have
The Standard reported that the tariff will put in place to ensure the delivery of petroleum
increase to KES5.53 per cubic metre per kilo- products
metre in the 2023-24 financial year but will “It is our role to ensure high quality of infra-
ease slightly during the 2024-25 financial year structure while at the same time keeping the
to KES5.50 when the firm expects to have com- products within the reach of the ordinary cit-
pleted building the pipeline. izen,” he said. “We will ensure that KPC gets
KPC’s Chief Planning Officer Elizabeth enough to build and maintain infrastructure
Akinyi explained that the company had initially [and] that the public gets products at a fair rate.”
applied for a tariff review in January this year KPC believes that the rates it has proposed
but then amended its request in July in order to are competitive. It said that the proposed tariff
account for the planned investments in the new of KES5.22 per cubic metre per kilometre is 40%
pipeline. less than the rate for road transport, which is
“In our initial tariff application, we had not currently KES6.7 per cubic metre per kilometre.
factored in capital for enhancement for the For fuel dealers from Uganda, who would use
Mombasa-Nairobi line where we plan to install the pipeline from Mombasa and lift the prod-
a new line,” she said earlier this week. ucts at either Kisumu or Eldoret, the landed
She was speaking to industry stakeholders at a cost in Kampala would be $74 per litre of petrol,
public participation forum where EPRA was according to KPC.
seeking views on the tariff application. This compares with a landed cost of at least
If EPRA approves the proposed tariff $90 per litre if they were to use road transport
increase, it will have the effect of increasing from Mombasa to Kampala.
the retail cost of petrol by KES0.54 per litre in Uganda, northern Tanzania, Burundi, east-
Nairobi, KES0.42 cents per litre in Nakuru and ern Democratic Republic of Congo and South
KES0.29 per litre in Eldoret and Kisumu. Sudan import petroleum products through
Motorists in Nairobi pay a surcharge of Kenya. ™

Week 36 08•September•2022 www. NEWSBASE .com P9