Consumers can breathe a sigh of relief as Kenya Petroleum Refineries Ltd (KPRL) moves to reduce its operational cost. The refiner had been at the mercy of Oil Marketing Companies (OMCs) because previous legislation did not allow it to import its own crude oil. A new system has now been put in place allowing the company to buy from cheaper, independent sources.

“This is a milestone that marks our transformational process since the KPRL inception in 1963,” said the company’s CEO, Brij Mohan Bansal.

Last month, the oil refiner signed a USD250 million deal with Standard Chartered Bank enabling it to become a merchant refinery. Over the weekend, KPRL had 82,000 metric tonnes of oil worth USD65 million shipped to Mombasa from Galan, a Kenyan oil trading firm. Mr Bansal said that this was the company's first independent purchase of crude oil.

According to the Mr Bansal, customers had been complaining about the previous costly and inefficient system. Now the refiner is free to procure the product, process it and sell it to marketing companies across the region. Mr Bansal said that consumers will be expected to pay less for fuel as the new system progresses.