Matatu Owners Announce Fare Hike After EPRA Increases Fuel Prices

Matatu operators have announced an increase in fares after the Energy and Petroleum Regulatory Authority (EPRA) hiked fuel prices.

In a statement on Tuesday, April 14 night, the Kenya Transporters Association Ltd (KTA) noted that fuel accounts for the largest share of transport operating expenses, making up about 55 percent of total costs.

The association pointed out that the increase in diesel prices from Ksh163 to Ksh203 per liter would result in an increase of approximately 13 to 14 percent in transport operating costs.

“The Kenya Transporters Association Ltd (KTA) wishes to inform members of today’s significant increase in diesel prices, which have risen by Ksh40 per litre, from Ksh163 to Ksh203 per litre, representing an increase of approximately 24.5%.

“Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55% of total operating costs,” read the statement in part.

KTA advised its members to urgently review their cost structures and adjust transport rates to reflect the new fuel pricing realities.

The association also urged operators to engage customers and contractual partners transparently to ensure continuity of services.

“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably. It is therefore necessary for all members to immediately review their cost structures and adjust transport rates accordingly to reflect the new cost realities,” KTA stated.

Further, the association said it will continue monitoring fuel price developments while advocating for the interests of transporters nationwide.

The statement comes after EPRA increased the price of diesel by Ksh40.30 per litre and super petrol by Ksh28.69 per litre in its latest review.

"In Nairobi, Super Petrol, Diesel, and Kerosene now retail at Ksh206.97, Ksh206.84, and Ksh152.78 effective midnight for the next 30 days," the statement read.

EPRA explained that the new prices factor in various tax components and recent legislative adjustments affecting the petroleum sector.

The authority noted that the government reduced the VAT rate on petroleum products to cushion consumers from the rising global fuel costs.

"Effectively, the Value Added Tax rate on Super Petrol, Diesel, and Kerosene has been reduced from 16% to 13% in order to cushion consumers from the high landed cost of petroleum products as a result of the escalated prices in the international market," the statement continued.

In addition, EPRA stated that the government will tap into the Petroleum Development Levy to stabilize pump prices.

"The Government will further cushion the consumers through the Petroleum Development Levy (PDL) Fund by utilizing approximately Ksh6.2 billion to stabilize the pump prices," the statement further read.