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.
In the latest review by EPRA, the cost of petrol increased to Sh 134.72 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.
Newton Wang’oo, KTA chairman of the association said the fuel pump price increase will affect transportation costs adversely noting that fuel costs contribute up to 35 per cent of total direct transport costs and indirectly affects other costs.
By increasing the prices, he said transporters can be able to sustain their businesses and avoid a total collapse of their businesses.
“Transport rates have remained constant from the period when the diesel pump prices (Mombasa) were between kshs 75-80 per litre compared to the current Ksh 108-110 per litre. Transporters margins can no longer sustain any increase in costs and regrettably have to pass on this increase to the cargo owners for the road transport sector to survive,” Newton Wang’oo, KTA chairman.
KTA, nonetheless, commended the government for its efforts to cushion the full impact of the increase through the Petroleum Development Levy (PDL).
