The Energy and Petroleum Regulatory Authority (EPRA) has affirmed that a review of the Kenya Pipeline Company storage and pipeline tariffs would cause a ripple effect on fuel prices.
Speaking during the second stakeholder forum on Wednesday, September 7, EPRA Director General, Daniel Kiptoo, noted that part of the authority's mandate is to not only serve the local market but the transit market in general.
He added that EPRA is also tasked with striking a balance by regulating the fuel prices and ensuring that KPC maintains its infrastructure.
"We are not competing just amongst ourselves but in other regions. We look at this in the bigger picture, how are we remaining competitive as a region to not only serve the local market but transit market as we look at the tariff review.
We also look at how do we strike a balance with KPC as our licensee and investor, we need to ensure that the systems they run are technically sound. That will require investment," Kiptoo stated.
His words were echoed by Zilper Adongo, KPC Customer Relations manager, who intimated that increase in fuel prices are occasioned by other factors.
KPC however noted that an upward review could occasion a slight increase in the fuel prices; where the prices will increase by Ksh0.54 per litre in Nairobi, Ksh0.42 per litre in Nakuru and Ksh0.29 per litre in Kisumu.
As it stands, a litre of super petrol, diesel and kerosene goes for Ksh159.12, Ksh140.00 and Ksh127.94, respectively in Nairobi.
"The pipeline capacity doesn't directly impact the fuel as there are other dynamics such as oil and gas, not just in Kenya but internationally. The tariff doesn't have anything to do with the supply and demand beyond the pump prices that we have," Adongo stated.
EPRA, however, made it clear that reviewed charges would be applied after conducting public participation and feasibility studies on the effects of fuel price hike.
"It is a requirement in law that we subject the proposal to public participation to incorporate the views of members of the public, before the new tariffs are operationalized,"Kiptoo highlighted.
EPRA is set to announce new pump prices on Wednesday, September 14, when it releases monthly reviews.
