The Energy and Petroleum Regulatory Authority (EPRA) has announced new rates to cover the fuel wastage that occurs along the pipeline from Mombasa port.
The rates for the month ending February 14 are Ksh 0.16 per litre for super petrol and diesel and Ksh 0.15 per litre for kerosene.
This increase reflects a higher level of inefficiencies in the network, which will cost consumers an extra Ksh 62 million or Ksh 17.14 million more this month.
The agency stated that it is working to reduce the wastage by improving the systems and infrastructure that ensure the pipeline network’s integrity.
“This includes the implementation of a Leak Detection System; the upgrade of storage tanks to dome-shaped (for diesel) and the floating roofs (for petrol) to reduce aeration and evaporation of the product,” the statement said.
However, KPC noted that Kenya has not fully benefited from its oil and gas resources due to challenges such as oil theft, pipeline vandalism, integrity compromise and leakages.
To address these challenges, KPC had planned to construct a new pipeline from Mombasa port by the end of this year but the talks collapsed due to the rising losses.
KPC losses are part of the pricing formula used by EPRA to determine the monthly fuel prices, passing on the costs to consumers.
The losses are classified as pipeline losses, with a limit of 0.25 percent.
In February last year, EPRA had set rates at Ksh 0.06 per litre for each of the three fuels, with rates changing every month.
The company has faced issues of vandalism and leakages along its new 450-kilometre line that was launched four years ago.
Pipeline losses are acceptable in the movement and storage of hydrocarbons which are influenced by temperature, density and pressure. However, fuel also gets wasted due to theft and leakages along the pipeline.