Expect fare increase after fuel price hikes; Transporters Association announces

The Energy and Petroleum Regulatory Authority (EPRA) indicated that the cost of Super Petrol and Diesel has gone up by Ksh.28.69 and Ksh.40.30 per litre respectively, while the price of Kerosene remains unchanged.

It attributed the increase largely to a spike in landed costs, the price at which fuel is imported into the country, between February and March.

In a statement on Wednesday, KTA said that the significant increase in diesel prices, now at Ksh.203 per litre, will automatically affect transport operating costs, and the need to adjust commuter prices is inevitable.

"Members are reminded that fuel constitutes the single largest cost component in road freight transport, accounting for approximately 55% of total operating costs," KTA noted.

Members of the Association have therefore been advised to review their cost structures and adjust transport rates accordingly, and engage their customers and contractual partners promptly.

EPRA said the adjustments reflect a rise in international petroleum product prices, coupled with exchange rate fluctuations and the application of statutory taxes under the Value Added Tax (VAT) framework.

The fuel regulator also announced that the VAT rate on Super Petrol, Diesel and Kerosene has been reduced from 16% to 13% to cushion consumers from the high landed cost of petroleum products.

In Nairobi, the maximum retail price for Super Petrol now stands at Ksh.206.87 per litre, with Diesel retailing at Ksh.206.84 and Kerosene at Ksh.152.78 per litre.

In Mombasa, Super Petrol will go for Ksh.203.69, Diesel (Ksh.203.56) and Kerosene (Ksh.149.49), while in Kisumu it will be Ksh.206.85, Ksh.207.06, and Ksh.153.03 for Super Petrol, Diesel and Kerosene respectively.