PSV to adjust bus fare to pass fuel burden to commuters

Matatu operators threaten to hike fares

Stakeholders in Public Service transport are warning that commuter charges will have to rise after the government increased the price of fuel.

Matatu Owners Association chair Simon Kimutai while speaking to Metropol TV revealed that they have no option but to pass the burden to commuters.

With some routes having already adjusted the fares already, Kenyans now fear for the worse.

On Tuesday the Energy Petroleum Regulatory Authority (EPRA) revised upwards a litre of petrol in Nairobi which will now retail at Ksh.134.72 from Ksh.127.14.

The cost of diesel meanwhile spiked to Ksh.115.60 from Ksh.107.66 while kerosene rose to Ksh.110.82 from Ksh.97.85.

EPRA attributed the rising fuel prices higher costs for landed petroleum products with the cost of landed super petrol rising by 0.72 per cent, diesel by 4.81 per cent and kerosene by 0.96 per cent.

A stand-in fund known as the fuel price stabilization fund has seemingly run out of reserves ending relief to Kenyans who had seen fuel prices go unchanged in the last two months.

The fund run partly by the National Treasury has provided respite to consumer by lowering margins paid to suppliers/ oil marketers who are later compensated by the exchequer for the hair cut.

Subsequent to lack of funding for the stop-gap kitty, EPRA has been forced to reinstate all of the margins ending with the significant jump in fuel prices.

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