By Judith Gicobi
The decision to raise fuel prices beginning on October 14, 2022, has been upheld by the Energy and Petroleum Regulatory Authority (EPRA).
Daniel Kiptoo, director general of EPRA, revealed the increase during a stakeholder meeting on August 22. He said it came after an assessment of Kenya Pipeline Company’s (KPC) storage and pipeline tariffs.
Kiptoo added that the increase will aid the business in maintaining its infrastructure and boosting productivity in addition to increasing its income base.
The revision of the tariffs, he added, will result in a hike in pump prices beginning on October 14 of Ksh0.54 per litre in Nairobi, Ksh0.42 per litre in Nakuru, and Ksh0.29 per litre in Kisumu.
Super petrol, diesel, and kerosene currently retail at Ksh159.12, Ksh140.00, and Ksh127.94, respectively in Nairobi.
However, EPRA made it clear that the revised fees would only be implemented following a feasibility study on the effects of the fuel price increase and public engagement.
The KPC pricing review for the 2020–2022 term came to an end in June. The corporation plans to build a new line between Mombasa and Nairobi in conjunction with the adoption of the new fees in order to improve the efficiency of the delivery of the crucial good.
Additionally, it will encourage the KPC asset base to increase from Ksh85.9 billion to Ksh104.30 billion, which will aid in the long-term stabilization of pump prices.
After President Uhuru Kenyatta announced a Ksh16.7 billion subsidy to shield Kenyans from the exorbitant cost of living, fuel prices remained steady in August.
The government has been utilizing subsidies to keep the commodity’s price from rising too high.