Pump prices in Kenya to remain high despite cool off in the global market

By Herald Aloo
Posted on Monday, 12 September 2022 10:15

An employee pumps fuel into a car at a Shell petrol station in Nairobi
An employee pumps fuel into a car at a Shell petrol station in Nairobi, Kenya, September 20, 2018. REUTERS/Baz Ratner

After suffering financial blows for almost three years amid massive infrastructure projects, Kenya Pipeline Company (KPC) is seeking to increase tariffs on storage and transportation of petroleum products, effective 14 October, to bolster its coffers.

Upon regulatory approval by the Energy and Petroleum Regulatory Authority (EPRA), the storage and handling charges will surge to KSh874.44 per metre cubic of oil, up from the prevailing Ksh696.83 rate. The pipeline transportation tariff will rise to KSh3.87 per metre cubic per kilometre.

Just as is the case with other costs of delivering consumer goods and services, the storage and pipeline charges are often transferred to motorists and households through hiked pump prices.