OUCH!

PSVs cry foul over fuel, fares to rise

Prices of super petrol, diesel and kerosene have risen sharply and will be passed on to passengers, consumers

In Summary

• Matatu owners say they will increase fares, citing the hiked fuel cost and social distancing protocols,

• About half the price of Kenyan fuel is taxes and levies - it cheaper when it lands in Mombasa and cheaper in Uganda. 

Matatu Owners Association chairman Simon Kimutai speaks to press at a hotel in Thika Road, Nairobi, on March 18.
HAVE MERCY ON MATATUS: Matatu Owners Association chairman Simon Kimutai speaks to press at a hotel in Thika Road, Nairobi, on March 18.
Image: ANDREW KASUKU

Kenyans will dig deep into their pockets to travel after public transport operators announced plans to increase fares.

Matatu owners on Thursday said the cost of doing business has gone up fuelled by Covid-19 social distancing protocols and the sharp rises in fuel prices.

"We are making losses as the government did not provide us with a subsidy. We urge the government to stop the outright discrimination against the sector," matatu owners chairperson Simon Kimutai said.

Kimutai addressed the press in Nairobi after meeting national executive council members.

"We are sorry that we will be offloading the fuel cost to the passengers."

He said the cost of fuel has increased by Sh20 per litre since January.

Kimutai said the government is supposed to be the one providing public transport but has failed.

"The matatu sector is a business that has an operating cost."

Kimutai said protocols on social distancing have worsened the situation.

But even as Kimutai complains about social distancing, most PSVs are already at full capacity.

The chairman said it is unfair for the government to allow the standard gauge railway and diesel mobile units and aircraft to carry full capacity while matatus have not been allowed.

The prices of super petrol, diesel, and kerosene have been increased by Sh7.63 per litre, Sh5.75 per litre, and Sh5.41 per litre, respectively.

A litre of petrol will now cost Sh122.81 in Nairobi, up from Sh115.18 it has retailed at since February 15.

Diesel will retail at Sh107.66 per litre, up from Sh101.91 a litre.

Poor households using kerosene for cooking and lighting will part with Sh97.85 to take home a litre, up from Sh92.44.

In its monthly review, the regulator — the Energy and Petroleum Regulatory Authority — pegged the rise on increased landed cost of importing the products.

"The charges in this month’s prices are a consequence of the average landed cost of imported super petrol increasing by 14.97 per cent from $391.24 per cubic metre in January to $449.82 per cubic metre in February 2021," acting director general Daniel Kiptoo said in a statement.

Diesel increased by 12.29 percent from $377.35 per cubic metre to $423.95 per cubic metre. The price of kerosene increased by 13.26 from $347.19 per cubic metre to $393.23 per cubic metre.

The Free On Board price of Murban crude oil lifted in February was posted at $61.61 per barrel, an increase of 11.47 percent from $55.27 per barrel in January.

Kimutai said Transport CS James Macharia and Health CS Mutahi Kagwe have not consulted them on the way forward especially on social distancing.

On March 12, President Uhuru Kenyatta directed the two CSs to consult stakeholders in the matatu industry with a view of reviewing social distancing protocols.

Kimutai said their earnings have dwindled due to the protocols.

More than 60,000 matatus and buses operate countrywide, according to the Matatu Owners Association.

It puts the industry’s gross earnings at more than Sh1 billion a day.

Currently, a 14-seater matatu carries nine passengers to adhere to social distancing to limit the spread of Covid-19.

Boda boda riders can only carry one passenger.

Kimutai said the sector has also been infiltrated by saloon cars and Proboxes, further eroding their earnings.

He said many law enforcers have resorted to openly collecting bribes.

Kimutai said it was wrong for the government to extend the stimulus package to other sectors such as tourism and leave the matatu sector to collapse.

(Edited by V. Graham)

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