Higher airfares loom as cost of storing fuel goes up

Plane

Fuel prices are one of the major factors that airlines use when setting ticket prices.

Photo credit: Pool

The cost of handling and storing imported aviation fuel (Jet A-1) will rise by 8.6 percent from July, in what could trigger an increase in the cost of air tickets as airlines pass increased fuel costs to passengers.

New charges that have been gazetted by the Energy and Petroleum Regulatory Authority (Epra) show that oil marketers will pay Sh563.92 per cubic metre as storage and handling fees from the current Sh518.83, marking a rise of 8.6 percent. The cost of loading trucks will also rise to Sh400.09 per cubic metre from July, reflecting a 5.3 percent increase from the current Sh379.87 for a similar quantity.

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