Lobby wants 10 per cent reduction in PSV fares

A consumer lobby wants Public Service Vehicle (PSV) owners to reduce commuter fares by about 10 per cent following last week's reduction in fuel pump prices.

The Consumers Federation of Kenya (COFEK) complained that since the Energy Regulation Commission (ERC) announced new prices one week ago, PSV operators have been reluctant to pass the benefits to the passengers.

Stakeholders meeting

COFEK Secretary General Stephen Mutoro said to ensure passengers benefit, Infrastructure and Transport Cabinet Secretary Michael Kamau needs to convene an urgent round-table meeting with all the stakeholders, with a view to discussing how PSV owners can reduce commuter fares.

Mutoro says based on a cost assessment carried out recently by his organisation, fuel accounts for more than 40 per cent of operational costs.

"With an average 10 per cent reduction in fuel pricing, we agree with the Ministry of Transport and Infrastructure that fares must come down immediately," said Mutoro.

Cost assessment

He added, "After evaluation of cost-recovery, taxes, insurance and consumables such as tyres and lubricants, we are convinced that a reduction of a minimum 5 per cent for in-county and 10 per cent reduction for inter-county commuting is mandatory."

ERC announced reduced fuel pump prices of various categories of oil, such as kerosene, diesel and petrol. However, PSV fares are still the same countrywide.