KPC to develop a new LPG storage facility to counter high cost of fuel
State-owned oil products pipeline transporter Kenya Pipeline Company (KPC) is now in the process of constructing a storage facility dedicated to Liquefied Petroleum Gas (LPG) with an initial capacity of 25,000 tonnes.
The facility whose tender for the construction is expected to be ready in the next three months should be operational in 3 years.
KPC which is eying to take over operations of the Kenya Petroleum Refineries Limited (KPRL) Changamwe facility and the new Ksh.40 billion Kipevu Oil Terminal is banking on the new facility to improve LPG cargo handling.
Should the parastatal be successful in its investment plans, Kenyans who are currently grappling with the high cost of living due to high prices of food and energy could pay more than 30 percent less for the commodity in the country.
Prices of the commodity have been on the rise after the National Treasury reintroduced a 16 percent value added tax (VAT) on LPG while excise duty on imported LPG cylinders went from zero to 35 percent.
The move by the government has forced Kenyans to pay more for cooking gas. Currently, refilling a 13kg of cooking gas goes for between Ksh.2,850 and Ksh.3,000 at local dealers, up from between 1,800 shillings and 2,000 shillings in July this