KPC facilities. (Photo/ standard media.co.ke)Companies exporting oil will now be forced to pay more while using the Kenya Pipeline facilities.
This includes charges for transportation and storage at any KPC stations in the country. This prices were reduced eight months ago by 30 per cent by the Kenya Pipeline Company.
The reduction of the price was aimed to attract more customers mainly those from Rwanda and Uganda, expanding the KPC market.
Competition between Kenya and Tanzania is the basic consideration as each of them tries to earn more from the landlocked countries. According to KPC, the tariff was targeted to improve market up to twenty per cent, a goal that has been cumbered with the increased competition.
“The promotional tariff was one of the strategies employed to capture the market and has resulted in 20 per cent increase in exports, there are other long term strategies that include investing more in new infrastructure and improving current facilities.” said the Kenya Pipeline Company.
Initially, the payment for storage of 1,000 litres costed $41.55 and is set to rise $59.32 per the same quantity of oil. These were the earlier charges before the reduction. Tanzania has gained much by some countries considering its route, thus avoiding the kenyan one.
Either, some of the landlocked countries had raised their concern about the many challenges they face while passing through the kenyan route. DRC Congo, Rwanda and Burundi are and example of such countries.