Kenya: PSVs to Raise Fares After Fuel Price Increase - Kimutai

16 June 2022
Capital FM (Nairobi)
By Sharon Resian Nakola

Nairobi — Public Service Vehicles (PSV) are set to increase their fares following the increase in fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA) on Tuesday.

According to the Matatu Owners Association (MOA) Chairman Simon Kimutai, the fuel increase has made the current fare prices unsustainable.

Speaking to Capital FM News, Kimutai further urged the government not to remove the fuel subsidy that has been cushioning Kenyans from the high costs.

"For us to be able to survive, I mean if we continue to charge the same fare, it is unsustainable and very costly and what will happen is that I have advised my members to adjust the fare and there is nothing else. For us to be able to provide services we must increase the fare," he stated.

"It is going to go up, people at one time will pay double fares. You cannot caution, if the government itself is even thinking of removing subsidies of fuel, so who are we to be able to hold this," Kimutai added.

Matatu and Boda-boda operators in Nairobi complained of low income in their operations and indicated that for them to survive and provide services, the fare prices must be increased.

"As per the rise of fuel in the country today, I work with the bolt, and it has not adjusted the fare prices. I will be forced to raise the fare for the customer because with the current situation now of fuel, the price can't remain the same," stated a boda boda operators.

In Nairobi, motorists will pay Sh159.12 per litre of petrol while the actual price of fuel is Sh184.68. the government will pay Sh25.76 form of fuel subsidy. EPRA stated that the prices are inclusive of taxes and adjusted for inflation.

"You see a place where we were to charge Sh100, we are forced to charge Sh130 or Sh150 so that we can recover the money for fuel and a little profit now that a litre is Sh159 yet it was Sh150," added a motorist.

According to EPRA, the price increase was influenced in part by importation prices. The average landing cost of imported super gasoline climbed by 5.96% from USD826.77 per cubic metre in March to USD876.05 per cubic metre in April, according to the report.

Read the original article on Capital FM.

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