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Owners Of Matatus Announce Fare Increase In Response To Rise In Fuel Prices

SK 2 years ago 2 min read

The Matatu Owners Association has announced a fare increase after the Energy and Petroleum Regulatory Authority (EPRA) raised diesel and petrol prices for the months of June and July.

The Matatu Owners Association has authorized its members to raise fare prices on various routes.

Some routes will see an increase of between Sh20 and Sh50.

The EPRA issued a statement informing Kenyans that the price of gasoline and diesel has risen by Sh9.

Under the new price, petrol will cost Sh159.12 per litre, up from Sh150.12, diesel will cost Sh140, up from Sh131, and kerosene will cost Sh127, up from Sh118.94 per litre.

Matatus in traffic

On Tuesday, June 14, EPRA announced an increase fuel prices in their monthly review

The new pricing went into effect at midnight on June 15 and will remain in effect until midnight on July 14, when EPRA will publish the next review.

“In the period under review, the pump prices of Super Petrol, Diesel and Kerosene increase by Sh9.00 per litre respectively. Super Petrol, Diesel and Kerosene will now retail at Sh159.12, Sh140 and Sh127.94 per litre respectively in Nairobi starting midnight,” EPRA said in the statement.

The government has also stated that it will discontinue the fuel subsidy that was implemented to protect motorists from rising global fuel prices.

The National Treasury has allocated Sh100 billion for the subsidy for the fiscal year 2022/23, but claims it is not sustainable.

However, as global fuel prices rise, the additional fuel costs may eventually exceed this allocation in the national budget, increasing public debt to unsustainable levels.

Without the fuel subsidy, petrol, diesel, and kerosene would have cost Sh184.68, Sh188.19, and Sh170.37 per litre, respectively.

“However, fuel subsidies are inefficient and often lead to misallocation of resources and crowding out of public spending on productive sectors, resulting in unintended consequences such as disproportionately benefiting the well-off,” Treasury CS Ukur Yatani said on Wednesday.