BUSINESSECONOMY

Fuel Hike: Transporters Increase Charges in Response

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Manufacturers and traders who will feel the pinch of the increased transport costs could also pass on the cost to consumers. [Photo/ KARA]
Manufacturers and traders who will feel the pinch of the increased transport costs could also pass on the cost to consumers. [Photo/ KARA]
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Moving cargo in Kenya is set to become more expensive after the Kenya Transporters ***ociation (KTA) on Tuesday, March 15 requested its members to effect increases of at least 5% on their charges.

Manufacturers and traders w** w*** feel the pinch of the increased transport costs could also p*** on the cost to consu****, leaving Kenyans facing a potential further increase in prices of essential items.

The move by KTA came barely a day after the Energy and Petroleum Regulatory Aut**rity (EPRA) announced the increase of fuel costs across the country. In their monthly review, the cost of Super Petrol and ****el was increased by Ksh5 per litre from Tuesday, March 15 to April 14.

Highlighting the impact of the move on the transportation business, KTA advised its members to hike their prices as well.

“KTA wishes to advise transporters countrywide to increase their transport rates by a minimum of 5 per cent to sustain their businesses under the current cir****tances and to cir***vent a total collapse of their ventures.

“Transport rates have remained constant from the period when the ****el pump prices in Mombasa were between Sh75 and Sh80 per litre, compared to the current Sh108-Sh110 per litre. Transporters margins can no longer sustain any increase in costs, and regrettably have to p*** this increase to the cargo owners for the road transport sector to survive,” they observed in a statement.

READ>>Absa Kenya Records Ksh10.9B Profit in Massive 161% Jump

Following the fuel hike, Super petrol w*** retail at Ksh134.72  per litre while ****el w*** retail at Ksh115.60 in Nairobi and its environs.

KTA noted that fuel costs represent over 35% of their direct expenses in the transportation sector.

EPRA highlighted the implementation of a Ksh20 government subsidy per litre as it announced the price review, a move meant to cushion Kenyans from the skyrocketing fuel prices.

Wit**ut the subsidy, the prices would be Ksh155.11 for petrol, Ksh143.16 for ****el and Ksh130.44 for ****el.

READ>>Kenya Commits To Remove Biomass Fuels By 2028

Written by
MARTIN SIELE -

Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

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