Starting from tomorrow, Wednesday, July 5, Kenyans using Public Service Vehicles (PSVs) will have to reach deeper into their pockets in response to the exorbitant cost of fuel.
In a press address on Tuesday, the Chairman of the Matatu Owners Association (MOA), Michael Kariuki, announced that fares would increase by 30 percent across different routes, including those within town areas and long distances.
“We announce with regret that due to fuel prices going up, the sharp increase in fuel cost together with an increase in the cost of spare parts, loan interest, among others,” said Kariuki during the press conference.
“After careful consideration, MOA has determined that fare adjustment is necessary. The decision to effect this hike was not taken lightly; however, it’s essential to strike a balance.”
The surge in prices came after the Energy and Petroleum Authority (EPRA) reviewed the prices of super petrol, diesel, and kerosene, raising them by a significant amount.
Super petrol saw an increase of Ksh.13.49, while diesel and kerosene experienced hikes of Ksh.12.39 and Ksh.11.96 respectively. This revision followed the VAT increment on fuel from 8% to 16%, which was included in the contentious Finance Act 2023 and signed into law by President William Ruto.
As a result, super petrol is now being sold at Ksh.195.53, while diesel and kerosene prices stand at Ksh.179.67 and Ksh.173.44 per liter respectively.
The rising fuel prices are expected to have a significant impact on the cost of living, with the inflation rate predicted to rise as a consequence. Sectors crucial to the country’s economy, including manufacturing, transport, and distribution, will be affected by the fuel prices.
