More Pain For Kenyans As Cooking Gas Prices Soar

Kenyans would pay more for liquefied petroleum gas (LPG) in the coming days, as rising taxation, freight, and landed expenses.

Prices are likely to rise by at least 15%, raising the cost of refilling a 6kg cylinder to Ksh1,500 from the current Ksh1,400. From the present price of Ksh3,000, the cost of refilling a 13kg cylinder will reach an all-time high of Ksh3,300.

Freight rates climbed by 20% in February, adding to the 16% VAT sting that will be reinstated in July 2021.

The government has relied on a subsidy program to keep Kerosene, Petrol, and Diesel costs low.

According to the Energy and Petroleum Regulatory Authority (Epra), if the subsidy had not been in place, the price of a litre of diesel in Nairobi would have risen to a record high of Ksh133.89 a litre in February.

Kerosene and super fuel prices were also reduced by Ksh15.88 and Ksh14.53, respectively, as part of the subsidy program.

On the global front, Brent futures slid $2.47, or 2.2 percent, to $110.46 a barrel on Thursday, while West Texas Intermediate (WTI) crude fell $2.93, or 2.6 percent, to $107.67.

Despite the drop, oil prices remain at an all-time high following Russia’s invasion of Ukraine for territorial disputes.

Russia sells 4 to 5 million barrels per day, which is more than any other country save Saudi Arabia.