New Fares After Fuel Price Hike

New Fares After Fuel Price Hike

New Fares After Fuel Price Hike

Following the recent increase in petrol prices, the Matatu Owners Association (MOA) proposed a 40–50% tariff hike, putting Kenyans in for tougher times.The group claims that during peak and off-peak hours for areas surrounding Nairobi and its capital, the tariffs will rise by Ksh30 to Ksh50.

To take advantage of the rates, the deadlines for charging these sums will also be extended.Brendan Marshall spoke with the traffic coordinator, a senior MOA member, who said that the sudden rise in fuel prices has an impact on other goods and has pushed them to rethink their pricing strategy.

As an illustration, a matatu that formerly charged Ksh100 during rush hour will now do so between Ksh120 and Ksh150. The peak hours, which once ran from 6:00 am to 8:00 am, will now go until 10:00 am, the official added.The peak hours in the evening will start an hour earlier at 4:00 pm and extend until 7:00 pm. The fare will be about Ksh150 at this time. The fare will always be Ksh100 after 7:00 p.m.

A matatu that previously charged Ksh50 will now price Ksh70 or Ksh80, according to Marshall, who also noted that during off-peak hours, rates will increase by Ksh30 to Ksh50.He continued by saying that the action is intended to protect their company from the negative consequences of the fuel price increase.Because goals must be achieved at all costs, there will be a rift between ourselves and our employees as a result. Since loans are used to buy automobiles most of the time, the banks and owners both demand a cut, thus it’s high time for price increases.

“This is a dire situation that needs to be addressed,” said one resident. “At the end of the month, we have to pay insurance premiums, city council averages Ksh7,000, and traffic officers also expect their cut.”

He said that the new prices will take effect right away and that the matatu industry would not have time to react to them.”As of today, as of midnight, when the fuel prices went into effect. We conducted a spot check and discovered that certain gas stations were stockpiling fuel at about 9:00 p.m. yesterday so they could implement new rates; hence, we were unable to grant a grace period, the official stated.In order to reduce costs, he suggested that customers use off-peak fares and only use public transportation when absolutely required.Nelson Nduki, the CEO of Super Metro, also told that the sacco would hold a meeting to talk about the effects of the new raise.

“We’ll decide by how much later in the day. We will have decided by the end of the day,” he stated.The price of gasoline, diesel, and kerosene was raised by Ksh16.96, Ksh21.32, and Ksh33.13 per litre, respectively, on Thursday by the Energy and Petroleum Regulatory Authority (EPRA).In Nairobi, this translates to retail prices of Ksh211.64, Ksh200.99, and Ksh202.61.

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