A parliamentary committee has asked for more time to establish why oil tankers take long, to discharge fuel at the Kipevu Oil Jetty which is contributing to the current high fuel prices in the country.
The time taken leads to high fees in demurrage that is subsequently turned to the consumers.
Demurrage in this case refers to the fee Kenya pays when a ship arrives at the terminal to discharge oil, and has to wait beyond the stipulated time.
It is charged on an hourly rate, based on the agreed market price.
The National Assembly’s Departmental Committee on Finance led by Gladys Wanga said they had received additional information on demurrage charges, which warranted seven more days of investigation.
“The committee received new demurrage charges, which has a bearing on the cost of fuel, that is why we are requesting for seven more days to inquire about the demurrage and duty charged on delayed cargo clearing,” said Wanga.
Wanga spoke when she gave a status update on investigations her committee was carrying out on the causes of high fuel prices in the country.
In one of the sittings last month, EPRA Director General Daniel Kiptoo told the committee, that in the last Financial Year, the government spent about $1 million (Sh110 million) monthly to pay for demurrage charges.
Credit:PD
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