AfriPulse
Public service vehicle operators have declined to immediately lower fares despite a fresh review of fuel prices, meaning commuters will continue to feel the pinch for now.
The decision comes just hours after the Energy and Petroleum Regulatory Authority (EPRA) announced a reduction in fuel prices following adjustments to Value Added Tax (VAT) on petroleum products.
Matatu Owners Association (MOA) President Albert Karakacha stated that operators require more time before implementing any fare changes, citing the need for internal consultations across the sector.
He maintained that fares that were increased after the initial fuel price hike will remain in place in the short term, even as pressure mounts from commuters. According to Karakacha, despite the dramatic reduction, fuel prices are still high, and they will still be demanding further cuts.
Matatus heading to Nairobi CBD during traffic along Ngara
Photo
Jalang’o
“We should be given two to three days to consult and communicate to the media regarding adjustments in fare prices following the new reduction in fuel prices,” Karakacha said.
“We have already fixed our prices, so we need to consult our members. We will still charge what we have already increased. We are businessmen,” he added.
The hesitation follows a rapid sequence of events that saw fuel prices surge sharply before being revised downward the following day after government intervention.
Treasury Cabinet Secretary John Mbadi had initially announced a reduction of VAT on fuel from 16 per cent to 13 per cent through a special gazette notice.
The tax was later lowered further to 8 per cent after President William Ruto intervened following widespread public outcry over the high cost of fuel.
EPRA subsequently adjusted pump prices, with Super Petrol in Nairobi dropping by Ksh9.37 per litre and Diesel falling by Ksh10.21 per litre, offering partial relief to motorists and businesses.
However, the earlier spike had already triggered a 25 per cent increase in matatu fares across several routes, significantly raising daily transport costs for commuters.
Operators argue that abrupt changes in fuel pricing create uncertainty, making it difficult to instantly adjust fares without assessing operational costs and consulting stakeholders.
A petrol tanker transporting fuel along Thika Super Highway, November 13, 2019.
Kenyans.co.ke
Source: Kenyans.co.ke | Read the Full Story…
