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Opinion: PSVs must lower fares

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The attention of the Consumers Federation of Kenya (Cofek) is drawn to the recent drop in fuel prices as announced by the Energy Regulatory Commission (ERC) on January 14, 2014. In our cost-assessment, fuel accounts for more than 40% of operational costs. With an average 10% reduction in fuel pricing, we agree with the Ministry of Transport and Infrastructure that fares must come down immediately.

After evaluation of cost-recovery, taxes, insurance and consumables such as tyres and lubricants, we are convinced that a reduction of a minimum 5% for in-county and 10% reduction for inter-county commuting is mandatory. Consequently, we do not agree that since PSV’s operational expenses may have gone up, the drop in fuel prices cannot significantly affect the current commuter fares.

We have been in touch with the Ministry, NTSA (National Transport and Safety Authority), MWA (Matatu Welfare Association) and MOA (Matatu Owners Association). We have requested the cabinet secretary to convene an urgent roundtable meeting to discuss the extent to which fares must come down.

In the meantime, we urge police to ensure that all PSV’s clearly display applicable maximum peak and off-peak fares. We also call upon the NTSA to require that all PSV’s issue receipts to all commuters for the fares they pay.

STEPHEN MUTORO, COFEK SECRETARY GENERAL

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