http://google.com, pub-7771400403364887, DIRECT, f08c47fec0942fa0 Fare Increases Expected as EPRA Implements VAT Increase on Petroleum Products

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Fare Increases Expected as EPRA Implements VAT Increase on Petroleum Products

Energy and Petroleum Regulatory Authority (EPRA) has announced a maximum increase in pump prices following the recent VAT increase on petroleum products to 16%.

Transport sector players have expressed concerns over this move, stating that it will result in higher fare charges, ultimately impacting their operations.




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Long-distance bus companies operating between Nairobi, Wajir, and Mandera have already raised their fares to a maximum of KSh 5,000 for one-way tickets.

Sonia Kabra, the owner of the online bus booking service Buupass, has revealed that many operators are considering fare increases, which are expected to be implemented next week.

Long-distance bus companies are now reviewing their fare charges in response to the rising fuel costs.

Legend Bus, which operates on the Nairobi-Wajir-Mandera route, is among the affected companies. (Photo: Rifaldo Willka, Source: Facebook)


This decision comes after EPRA reviewed pump prices to incorporate the 16% VAT on petroleum products.

Anticipated Effects of Increased Pump Prices

Various operators have already communicated their plans to increase bus fares following the regulatory decision to raise pump prices.

Sonia Kabra of Buupass stated that most companies will be making formal announcements regarding fare adjustments in the coming week.

"Given the increase in petroleum prices, we anticipate that operational costs will rise, directly impacting fares. Industry stakeholders are currently discussing a fare review, the details of which will be communicated next week," explained Kabra in response to TUKO.co.ke.

Kabra also mentioned that these changes would also affect courier and parcel services, which could lead to increased charges.

Bus Fares from Nairobi to Mandera

Bus companies operating between Nairobi, Wajir, and Mandera have already implemented fare increases, with prices reaching up to KSh 5,000.

Fares for routes such as Nairobi to Wargadudo, Rhamu, and Mandera will range from KSh 5,000, while Nairobi to Kutulo and Elwak fares will be set at KSh 4,000.

"The increase in fares is due to the rise in fuel costs," stated a communication from a joint bus company meeting held on June 30, 2023.

Easy Coach's customer care officer informed TUKO.co.ke that prices currently remain unchanged, but a formal announcement regarding any fare adjustments will be made soon.

Matatu Owners Announce Fare Increase

Meanwhile, matatu owners have warned that the VAT increase will lead to higher fuel prices, leaving them with no choice but to raise fares accordingly.

EPRA's review has resulted in a price hike of KSh 13.49 per liter for super petrol, KSh 12.39 per liter for diesel, and KSh 11.96 per liter for kerosene.

As of Saturday, July 1, a liter of super petrol now retails at KSh 195.53, up from KSh 182.04 prior to the increase.

Source: TUKO.co.ke
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