Effects of rise in cost of fuel affecting various sectors

Kiambu, Tuesday, May 16, 2023

KNA by Terry Njueini

The effect of the rise of fuel in the last two days is taking a toll on Kenyans in the  different sectors of the economy.

Kenyans have begun to bear the brunt of the recent rise in fuel prices after the Energy & Petroleum Regulatory Authority (EPRA) announced new fuel prices for the period between May 15, 2023, and June 14, 2023.

The retail prices for super petrol, diesel and kerosene have increased by Sh3.40 per litre, Sh6.40 per litre and Sh15.19 per litre respectively.

James Kuria, Head of Kaka Travelers Sacco Kiambu Branch told KNA that the transport industry has been greatly affected by the new prices.

The transport sector in the country is the largest consumer of petroleum products accounting for approximately 68.7 percent of the total volume of petroleum fuels

“We are feeling the pinch already but are yet to increase commuters’ fare prices. We are monitoring the situation first as we also do not want to lose our customers,” he said.

In as much as they are paying more for petrol, Kuria said they are not charging extra and the fares remain the same for their customers, though he was quick to add that if the price continues to change in an upward trajectory they will have no alternative but to adjust the fares.

Peter Ben who is a bodaboda rider in Kiambu town told KNA that increase in fuel prices has also hit him hard as he will be forced to cover the overhead cost of operations as opposed to charging more from his customers.

“Two days ago after the announcement of fuel increase, I contemplated adjusting my charges but again I feared driving my customers away considering they are also very pressed financially and would not agree to pay more,” Ben said.

A spot check at the Kiambu market reveal that prices for different commodities in terms of food have increased significantly as one trader named Grace Mbugua said.

An increase in oil prices automatically results in an increase in all the associated costs of production, processing, and transportation of food products.

I am a banana vendor at Kiambu Market and the effect of the rise in fuel has trickled down on us, I have been purchasing my bananas for sale but now I am buying at a much higher cost and this as my supplier is telling me is because of the hike in fuel which is affecting the transportation costs from farm to market,” she said.

Mbugua noted that for her business to continue she will now either reduce the number of bananas that she buys or purchase them at a higher price and in turn charge more from her customers.

The new cost of fuel currently is Petrol now retailing at Sh182.70 per litre, Diesel at Sh 168.80 and kerosene at Sh161.13.

EPRA Director General Daniel Bargoria said the adjustment in fuel prices is a result of an increase in the landing cost of imports of petroleum products and the prices are inclusive of the 8 per cent Value Added Tax on petroleum.

Courtesy; K.N.A