Transport Charges Likely to Hike Amid Rise in Fuel Prices

Passenger service vehicle operators are contemplating increasing fare charges in the wake of rising fuel prices.
Matatu Owners Association (MOA) yesterday said it is assessing the impact the new fuel prices will have on their business before deciding to increase fares.
According to MOA, the sharp rise adds to operational costs and this is in the background of constant losses due to enforcing social distancing in the vehicles.
On Sunday, the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices for the next 30 days.
Petrol, Diesel and Kerosene have increased by Sh8.19, Sh5.51 and Sh5.32 a litre, respectively.
Vehicle owners are now paying Sh115.18 per litre of petrol up from Sh106.99. Diesel, widely used by matatus, is now selling at Sh101.91 a litre from Sh96.40.
MOA Chairman Simon Kimutai said PSVs have bee operating at a loss since the reduction on their carrying capacity, with up to Sh15 billion monthly losses.
“The (fuel) prices have been going up yet our business s not profitable. The cost of operating has been going up. We are assessing the impact on the fuel prices and will have a decision in the course of the week,” said Kimutai.