Oil marketers are anticipating increased profits as Epra begins a crucial review that will determine new costs for the next five years.
The Energy and Petroleum Regulatory Authority recently awarded Kurrent Technologies the tender to conduct the Cost of Service Study in the Supply of Petroleum Products for Sh29.3 million.
The study aims to assess the running costs incurred by oil marketing companies and gather insights from industry stakeholders on incurred costs against the backdrop of changing local and global oil landscapes. This study will analyze shifts in the fuel supply chain from importation to distribution over the last five years.
Following the previous COSSOP conducted in 2018, which resulted in set profit margins for oil marketing companies, the sector has been advocating for a review due to rising fuel prices and costs.
While the Petroleum Institute of East Africa was unavailable for comment, other industry groups are gearing up to provide input for the new study, focusing on advocating for higher profit margins to align with current costs. Martin Chomba, chairman of the Petroleum Outlets Association of Kenya, confirmed preparations for recommendations on new margins in response to the impending review.
