By David Imaa
Nairobi — Kenya Transporters Association(KTA) has asked its members to increase cargo transport rates by a minimum of 5 per cent in order to sustain their businesses.
The advisory was issued after the government through the Energy & Petroleum Regulatory Authority (EPRA) on Monday increased the pump prices for petrol and diesel by Shs 5 per litre.
“KTA wishes to advise transporters countrywide increase on trasport rates by a minimum of 5 per cent to sustain their businesses under the current circumstances and to circumvent a total collapse of their ventures.” the statement reads in part.
In the latest review by EPRA, the cost of petrol increased to Sh134.72 compared to Sh129.72 in the previous month. Diesel also increased to Ksh.115.60 while the price of Kerosene will remain unchanged at Sh103.54.
The landing cost of petrol is Ksh78.14. It attracts storage and distribution costs of Ksh3.35 and taxes and levies totalling Ksh59.71. However, a price stabilisation deficit of Ksh6.48 is subtracted from the costs to bring it down to Ksh134.72.
The increase in the cost of fuel prices will further dents the pockets of Kenyans mwanachi who are already feeling the economic effects of the pandemic that ravaged the world, bringing businesses to their knees and forcing others to shut down.