Kenyans are set to continue purchasing fuel at higher prices following the Energy and Petroleum Regulatory Authority's decision to approve new tariffs for oil marketers.
In the new tariffs, marketers evacuating fuel from the Kenya Pipeline Company (KPC) depot in Nairobi will be charged Ksh2,526.6 per cubic metre, up from Ksh2,074.5.
Currently, a litre of petrol retails at Ksh178.30, diesel at Ksh163 and kerosene at Ksh146.94. But with the tariffs review, the cost is set to be passed to the consumers, thus increasing fuel prices.
Financial experts opined that the new tariffs may affect fuel prices in the next three years.
"The Energy and Petroleum Regulatory Authority has reviewed and approved the applicable Kenya Pipeline Company’s multi-year pipeline transport tariff for the tariff control period 2022/2023-2024/2025," EPRA Director General, Daniel Kiptoo, stated on Friday, November 4.
"The effective date of the above set of tariffs is October 15, 2022, and subsequent adjustments for the next tariff control period will be July 15 of every year," EPRA added without revealing a new scheme that would be employed to standardise fuel prices in the country.
Defending the move to increase the depot tariffs, KPC argued that the extra money collected would help the company improve its structures.
KPC added that the funds collected would be critical in constructing a new pipeline from Mombasa to Nairobi, thus enhancing efficiency and, in the long term, reducing the cost of evacuating fuel.
Also, EPRA approved the increase following a series of public participation forums throughout the country.
Before the exercise, EPRA had projected that fuel prices would increase by 54 cents per litre in Nairobi.
In Nakuru, it was projected to increase by 42 cents and while in Eldoret by 29 cents a litre. New fuel prices will be announced on Monday, November 14.
