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No respite for commuters despite falling fuel prices

Pump prices have been going down since December.

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by The Star

Kenya19 March 2024 - 14:03
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In Summary


• The Consumers Federation of Kenya hasaccused the matatu industry of being quick to raise fares when fuel prices increase , but fail to act during drops.

• A spot check by the Star noted that fares that increased by between Sh20-Sh30 on major routes are yet to come down despite the consecutive drops in fuel prices.

Matatus along Tom Mboya Street in Nairobi's CBD/ FILE

Commuters in the country continue to pay high fares despite successive drop in fuel prices.

Fuel prices have witnessed a down ward trend since December, as the Energy and Petroleum Regulatory Authority (EPRA) pass the benefits of the lower global crude prices, gains from the government-to government fuel import deal and a a stronger shilling against the US dollar.

In its latest review on March 14, EPRA slashed petrol pump prices by Sh7.21 per litre, giving motorists a huge relief.

Diesel, which is widely used in the public transport sector, farms and industries, went down by a notable Sh5.09 while kerosene used in low income houses for cooking and lighting dropped by Sh4.49.

This saw a litre of petrol retail at below the 200 mark in Nairobi for the first time since August, with pump prices currently at Sh199.15 in the city.

Diesel will retail at Sh190.38 and kerosene Sh188.74 per litre, until the next review in mid-April.

In January, the price of super petrol reduced by Sh5 per litre, while diesel and kerosene went down by Sh5 and Sh4.82, respectively.

This was after drops of Sh5, Sh2 and Sh4.01 for petrol, diesel and kerosene, respectively, in December.

Despite these, commuters in the city have continued to pay exorbitant fares as matatu operators in the different city routes, long-distance travel and other major towns retain charges.

A spot check by the Star noted that fares that increased by between Sh20-Sh30 on major routes are yet to come down despite the consecutive drops in fuel prices.

For instance, operators on the Umoja-Central Business District route are charging between Sh80 and Sh100 during peak hours, a route that averaged Sh70 before the fare hike towards the end of last year, which operators blamed on the then increases in pump prices.

Kasarani-CBD remains at between Sh80-Sh100 during peak hours, almost similar with the Embakasi route, Ngong, Kiserian and Rongai, with fares averaging Sh100 during rush hour. Overall, fares remain high by up to Sh30 on majority of the city routes.

There has also not been a major relief on long-distance travelers as fates remain the same on most routes.

“I don’t feel the difference even as fuel prices go down. I feel like I am being robbed,” Charles Owino, a resident of Umoja told the Star yesterday.

The Consumer Federation of Kenya (COFEK) has since accused the matatu industry of being quick to raise fares when fuel prices increase even by small margins, but fail to act during drops.

“This is a definition of a bandit economy. From their culture, we don’t expect them to bring down the fares. It is a cartel behaviour where they maximise on increases but fail to pass any benefits when prices go down with excuses of spares and other non-factors,” Cofek secretary general Stephen Mutoro said.

Last week, the Matatu Owners Association (MOA) indicated its members would lower peak hour fares in the city by at least Sh20, to pass the benefits of lower fuel prices to commuters.

Brendan Marshall, a senior official indicated that operators would continue passing on the benefits to passengers if fuel prices record further drops in the coming months.

The fares are however yet to drop, even as spare costs also ease on the strengthening of the shilling, which has made imports cheaper.

MOA president Albert Karakacha told the Star on the telephone, that its members are offering lower fares during off-peak.

“We are however talking to our members to see how we can bring down fares and pass benefits to mwananchi,” Karakacha said.

Easy Coach, one of the biggest long-distance bus companies with over 35 destinations, has hinted of a possible drop.

"Awaiting a reduction on the Wholesale price, none so far. Thereafter, we adjust,"managing director Azym Dossa told the Star.

Meanwhile, Cofek has called on the government to offer incentives to companies willing to invest in the public transport sector.

“We need more accountable players in the industry but as at now, we are dealing with faceless individuals who do whatever pleases them,” Mutoro said.

The high transport costs continue to add pressure to households are struggling with a high cost of living mainly on healthcare and education, amid reduced disposable income, even as the government says the cost of living has gone down.

According to the Kenya National Bureau of Statistics (KNBS), inflation rate went down to 6.3 per cent in February from 6.9 per cent in January, driven by among others, a drop in prices of some commodities such as tomatoes, sugar, maize grain and maize flour.

“Whereas the prices of petrol and diesel decreased by 0.5 per cent between January 2024 and February 2024, the transport index went up by 0.2 per cent during the same period, ”KNBS noted.

 

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