The rise in fuel prices did not only affect private motorists, even those who use public service transport have also suffered the hike in bus fare prices. However, the Lord has heard the cry of Kenyans and finally, we can all start enjoying lower prices of petroleum prices.
Kenyans will soon start enjoying lower prices of petroleum products after the Kenya Pipeline Company (KPC) revealed a drastic reduction in its storage costs. According to KPC, it’s now only a matter of time before the benefits of the four storage tanks at the Nairobi depot start trickling down to taxpayers.
Managing Director Joe Sang today told MPs that the firm had already cut fuel storage costs by 50%
He cited the commissioning of 133 million-litre storage tanks at the company’s Nairobi terminal.
Addressing the National Assembly departmental Committee on Energy, Sang said that the monthly demurrage cost had reduced from Ksj. 154 million in June to Ksh. 79 million in October.
“Besides guaranteeing the security of supply of petroleum products, the new tanks have also enhanced operational flexibility and increased tank turnaround at Kipevu, Mombasa, resulting in more ullage creation and significant reduction of demurrage charges,” he said.
The reduction of the storage charges means that Kenyans will soon start paying less for their fuel because demurrage costs are usually factored in the prices set by the Energy Regulatory Commission. At the moment, tanker owners charge marketers demurrage penalty, which adds to about a shilling per litre, due to insufficient ullage.
Mr. Sang told the panel chaired by Naivasha East MP, David Gikaria that the construction of the tanks located at KPC’s expansive industrial area depot was completed in May at a cost of Ksh 5.3 billion.
He said the four additional tanks were constructed to provide sufficient capacity to receive higher volumes of diesel and super petrol products following the recent completion of the new Mombasa-Nairobi pipeline popularly known as Line 5 that was completed on 30th June.
“Line 5 is already operational and is currently running at 800,000 litres per hour. We are working towards attaining the targeted installed flow rate of one million litres per hour,” the KPC boss said.
The additional tanks have more than doubled the storage capacity of diesel and super petrol from the earlier 100 million litres, bringing the total capacity to 233 million litres.
The new 20-inch pipeline will ensure sustained, reliable and efficient transportation of petroleum products in the region over the next three decades.
Do you think matatus will reduce the price of fare in the event that there is a drop in fuel prices?