Proposed KPC tariff to drive up fuel prices

The Kenya Pipeline Company (KPC) is seeking to increase the cost of piping fuel from the current 4 shillings 61 cents per cubic meter per kilometer, to 5 shillings 22 cents per cubic meter per kilometer starting October 2022.

This will see fuel prices go up if the pipeline tariff proposal is adopted.

It will further burden consumers who have decried the high pump prices witnessed in the country.

KPC says the increment will finance different investments that will improve the safety of fuel transportation and storage.

This comes as the government has since last year been subsidizing fuel prices after crude oil prices drastically increased.

Currently, the government is subsidizing a liter of super petrol by 54 shillings 91 cents, diesel by 66 shillings 17 cents and kerosene by 74 shillings 17 cents.

On a different note, KPC has proposed the unbundling of the current pipeline tariff structure that would see transportation and storage treated separately.

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