FEATURED STORY

Skyrocketing Cooking Gas Prices Hit Kenyans Pockets

Share
Cooking gas prices are not regulated by the Energy and Petroleum Regulatory Authority (EPRA) as they do petroleum or kerosene, for example. [Photo/ Standard]
Cooking gas prices are not regulated by the Energy and Petroleum Regulatory Authority (EPRA) as they do petroleum or kerosene, for example. [Photo/ Standard]
Share

Kenyans are grappling with an increase of up to 30% on lpg cooking gas prices, forcing them to dig deeper into their pockets.

In Nairobi, a 6kg gas cylinder now costs Ksh2,600 – up from Ksh1,800. A 13kg cylinder which would previously set you back Ksh2,600 now costs Ksh3,100.

Dealers have attributed the price surge to the weakening Shilling. In 2022, the Kenyan shilling lost more than 8% against the dollar, hitting record lows on multiple occasions.

They further cited the impact of taxes. The Finance Act 2022 set the tax on liquefied petroleum gas (LPG) supplies at 8 per cent, a year after Parliament had reinstated the tax after a five year absence, at 16%.

Since June 2016, lower cooking gas prices had led to usage almost doubling after the National Treasury scrapped the tax. The move was intended to drive increased uptake of LPG among low-income earners, many of whom rely on kerosene and charcoal for cooking.

READ>6 Biggest New Malls Opening in 2023 in Nairobi, Machakos

The government pushed for uptake of LPG and solar for households ostensibly to curb respiratory diseases, and rein in environmental degradation.

Ironically, the current price surge is driving an increase in the uptake of alternatives including charcoal and kerosene – as many Kenyans simply can’t afford to purchase and refill cooking gas cylinders.

Lobby groups had tried to have the return of tax on LPG supplies stopped citing the hardship it would occasion in households which continue to struggle with an economic downturn and inflation, with prices of important commodities including food and fuel rising sharply in the past year.

Cooking gas prices are not regulated by the Energy and Petroleum Regulatory Authority (EPRA) as they do petroleum or kerosene, for example. This leaves consumers at the mercy of market forces.

READ>6 Multi-Billion Kenyatta Family Companies & Assets

 

 

 

Written by
BUSINESS TODAY -

editor [at] businesstoday.co.ke

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

WHAT YOU NEED TO KNOW IN POLITICS

FOLLOW US ON SOCIAL MEDIA

Related Articles
Prime Cabinet Secretary and Cabinet Secretary for Foreign & Diaspora Affairs
FEATURED STORY

Inside Kenya’s 60 Years of Diplomatic Journey

Kenya is set to commemorate 60 years of diplomacy this week starting...

Aquila East Africa
MEDIANEWS

Kenyan Communications Firm Aquila Expands into Rwanda, Uganda

Aquila East Africa, a leading Kenyan integrated communications firm has expanded into...

Live Mobile Sports Betting in Africa
SMART MONEY

The Rise of Live Mobile Sports Betting in Africa

With mobile phone penetration increasing at an unprecedented rate and internet connectivity...

BUSINESS

Bolt Invests Sh14 Billion to Tackle Most Complex Challenge in Ride-Hailing

Bolt will commit Ksh14 billion over three years to support raising awareness...