Tough times as LPG gas prices goes up countrywide.

Tough times as LPG gas prices goes up countrywide.

BY JOAN WANJIKU,NAIROBI,7TH MARCH,2022-Cooking gas consumers in the country  are expected to dig deeper into their pockets following the increase in prices of the commodity also known as  Liquefied Petroleum Gas (LPG).

Since the government introduced Valued Added Tax (VAT) on cooking gas in 2021, the price of the crucial commodity for many Kenyans has been skyrocketing. The situation has been worsened by disruption of the global supply chain.

On Sunday, March 6, Rubis Energy informed its customers of the new prices that were to set it Monday, 7. With the new prices, the cost of a 13kg cylinder has shot from Sh3, 113 to Sh 3, 340.

The 6kg cylinder will be refilled at Sh1,560 from Sh1,441 and the 35kg cylinder will be refilled at Sh 8,760 from Sh8,191.

Prices have increased by 50% from January last year, or by Sh 1000 – more than three times the 16% VAT the government introduced on LPG.

Unlike petrol, diesel and kerosene, cooking gas prices are not controlled. Kenya’s LPG businesses are mainly controlled by players including Total, Rubis and Oil Libya and Africa Gas and Oil (AGOL).

An image of a petrol station/File

Energy expert Allan Chege has asked families to prepare for tougher times as demand for petroleum products heightens.

“Kenya draws its petroleum imports from the Arab League. A possible interruption in supply in Europe due to the ongoing crisis will push demand up for the OPEC products, hence increase in prices,” said Chege.

Analysts further fear that the current tension and geopolitics will have far-reaching implications for the global economy, given that some of the countries involved are major producers of natural gas.

Recent reports by the Kenya National Bureau of Statistics (KNBS) showed that monthly inflation marginally dropped to 5.07 in February.

Experts link this to little impact of government subsidy programmes, high tax burden and cost of importation of raw materials.

Manufacturers are also struggling with shortage of raw materials and expensive global freight delays as as countries flex muscles in Europe.

Producers have also noted a shortage of materials such as plastics, steel, copper and other semiconductors used in electronics. This has caused manufacturers in automotive and household electronics to increase their prices by at least 20%.

Facebook Comments Box