The move by the Kenya Pipeline Company to cut the cost of transporting fuel to neighbouring countries by nearly a third is a step in the right direction.
Pipeline costs for products headed to Rwanda, Democratic Republic of Congo, Uganda, Burundi and South Sudan from the port of Mombasa will now be $44.55 (Sh1,579) per 1,000 litres from $59.32 (Sh6,098).
According to the Kenya Pipeline Company, the price cut should help it recapture market share it has lost to Tanzania. The new charges are set to take effect from next month.
Landlocked neighbours like Rwanda and Burundi had stepped up fuel imports through Tanzania’s main port of Dar es Salaam, arguing that the Kenyan route was expensive and had experienced contamination of cargo.
But even as we seek to regain our lost clout in the sector, there is need for the energy regulator to crack down on fuel adulteration menace that has blighted the sector.
The Kenya Transporters Association has warned that importers from regional landlocked countries are now opting to route their shipments through Tanzania because of the problem.
It argues that Kenya is losing out its status as the preferred route for landlocked East African countries.We urge the Energy Regulatory Commission should step up efforts to impose punitive measures on rogue traders found contaminating fuel.
Failure to do so would only render the campaign to regain the country’s lost market share a tough task.The fuel contamination problem has persisted in the sector for far too long and time has come to wipe it out once and for all.
The economy cannot afford such expensive hurdles. Fuel contamination is not only dangerous, but also denies the country vital revenue.
While we have laws meant to regulate the sector, the loose end has been on the implementation. We believe that imposing punitive measures such as blacklisting and prosecuting those perpetrating the racket would clean up the sector.
A petrol station. Photo courtesy