KPC defends new fuel loading tariffs, promises new rules

The Kenya Pipeline Company management has promised to review its decision of standardizing fuel loading tariffs across its depots in the country to give life to small scale business enterprises that are dependent on petroleum loading services.

The KPC management had termed the new tariff as promotional, adding that the standardized tariff would last for just six months before a review as soon as the regional fuel market stabilizes.

The oil company defended the move to standardize tariffs, saying it was aimed at enabling the corporation to recover its regional foothold that was fast shrinking against a backdrop of fuel merchants opting to buy the commodity from alternative players in the East African market.

KPC corporate communications manager Jason Nyantino said that the standardized tariffs are only promotional and not permanent and that they can be reviewed anytime.

“The company is accessing the economic impact of the standardization of tariffs and within the few next month’s we are likely to review the tariffs,” said Nyatino who spoke after a stakeholders meeting at the company’s Nakuru depot.

The move comes in the wake of discontent from Nakuru county residents over the Government`s revised standardized tariffs for fuel loading services from Sh 45 to Sh 56 per litre for all the KPC depots in the country.

The residents had petitioned the oil corporation to revise the tariffs, saying that the new standardization tariff for bulk fuel exporters had impacted negatively on their businesses.

He further noted that the main aim of standardizing the tariffs was to bring back export oil marketers who had fled to the Tanzanian market adding that since the standardization they have so far managed to bring back at least 30 percent export oil marketers who had fled.

Nakuru gubernatorial aspirant John Mututho called on the business community around the pipeline area to be patient as the issue is sorted out and promised to follow it up to its conclusion.

Also present at the meeting was Nakuru Town East Mp David Gikaria and the area business community committee.

The meeting followed an outcry from the business community who said that their businesses have been hugely affected following the move to standardize the fuel tariffs a move that has seen a total reduction in the number of export trucks loading fuel products from the depot.

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