Kenya Government slash oil pipeline tariff price for oil importers by 50 percent.
Kenya is trying to regain the regional fuel transport market after loosing it to Tanzania’s port Dar es Salaam. As a result of this loss, Kenya’s Energy and Petroleum Regulatory Authority (EPRA) has slashed the oil pipeline tariff; from the usual US$60 to US$30.89 per 1,000 litres as a way of attracting oil importers.
Tanzania is charging US$80 per 1,000 litres and are currently negotiating to review this price; to maintain their stands with regards to this announcement from Kenya. Hence making the two ports competitive as both parties are looking to attract more business form oil importers.
Kenya’s Northern Corridor has long been the preferred route by landlocked countries but recently, the Central Corridor through Tanzania has gained favour especially with importers in DRC and Rwanda.
In June, Tanzania’s Finance Minister Philip Mpango in his budget speech announced the scrapping of delivery fees, stripping fees, export fees and container cleaning charges at the Dar es Salaam port.
The country also outlined plans to have Malawi, the DRC and South Sudan increase their import and export cargo volumes through Dar es Salaam port. South Sudan has already signed a bilateral agreement to at least double its annual transit cargo volume.