EPRA Announces Plan to Review Tariffs Affecting Fuel Prices
The Energy and Petroleum Regulatory Authority (EPRA) has indicated plans to review transport and storage charges, which were last increased in July 2024.
These charges that often push the pump prices are meant to cover expenses for handling fuel through the Kenya Pipeline Company (KPC) and other depots and are subject to three-year review cycles.
In a notice on Thursday, EPRA announced public participation meetings toshare viewsamid plans by KPC to review pipeline transportation and secondary storage tariffs.
“EPRA has received an application by KPC for the review of pipeline transportation and secondary storage tariffs for the 2025/2026 to 2027/2028 financial years pursuant to section 11 (b) of the Energy Act Cap 314,” a notice from EPRA read.
The review is in line with KPC’s application, which was submitted to EPRA earlier under Section 11(b) of the Energy Act, Cap 314, which mandates EPRA to regulate the energy sector, including handing the authority an oversight role of petroleum infrastructure and pricing frameworks.
As part of its commitment to ensure inclusivity, EPRA confirmed it would be holding stakeholder consultations across various locations in the country. The forums are meant to gather views, concerns and recommendations from ordinary citizens, industry stakeholders and other parties on the proposed tariff adjustments.
The consultation workshops will run from 8am to 1 pm, with EPRA emphasising that the forums are part of its statutory obligation to ensure public participation in the decision-making processes that affect the energy sector.
All public consultation workshops will run from 8am to 1:00pm, allowing adequate time for presentations and feedback. EPRA emphasised that these forums are part of its statutory obligation to ensure public participation in the decision-making processes that affect the energy sector.
Counties which will be involved in the forums include Nairobi, Nakuru, Eldoret, Kisumu, Mombasa and Garissa.
Besides attending the in-person forums, stakeholders are encouraged to submit written memoranda, which can either be sent via email or via hard-copy submissions. All details on the venues and dates of the public forums are available on EPRA’s official website.
In July 2024, EPRA adjusted the transport charges (per cubic metre) by 6.75 per cent from Ksh5.12 to Ksh5.44. At the same time, the Authority also reviewed the storage fees at KPC’s four depots upwards by 7.95 per cent, with new rates reaching Ksh4,175 per cubic metre.
Pipeline and storage fees are part of the determinants ofthe final cost of fuel at the pump. With this in mind, these changes in pricing could effectively affect how deep Kenyans will have to dig into their pockets to pay for petrol, diesel and other fuel products.
Another key factor is landed costs, which entail expenses incurred when petroleum products arrive in the country through Kenyan ports. These costs include shipping and insurance.