Thursday, April 4, 2024 - Kenyans will have to pay more to refill their Liquefied Petroleum Gas (LPG) cylinders following an increase in prices in the past week despite President William Ruto’s government removing tax on LPG.
According to the latest data by the Kenya National Bureau of Statistics (KNBS), the prices hit a high of Ksh3,231, on average, for a 13-kilogram cylinder in March 2024 compared to an average price of Ksh3,187 in February 2024 and Ksh2,600 in January 2024.
In contrast, the commodity retailed at Ksh3,137 for a 13 kg cylinder in March 2023, translating to a 3 percent year-on-year spike.
According to past KNBS data, the last time the prices came close to the margin was in June 2022, when the cost of a 13 kg gas retailed at Ksh3,218.
Since 2007, the prices have been on average at Ksh2,500, with some going as low as Ksh1,600 (January 2007) while others hiking to levels above the Ksh3,000 cost.
The price hikes come amid the government's efforts to lower the cost, including scrapping the 8 percent Value Added Tax (VAT) on the product.
This was effected by the Finance Act 2023 as part of President William Ruto's plan to increase usage in line with Kenya's policy to transition to clean energy by 2030.
The surge in prices has seen consumers question the effectiveness of VAT exemptions in cushioning them from the high cost of living.
Currently, LPG is subject to other tax measures including an excise duty at 35 per cent, an import declaration fee of 2.5 per cent, and a Railway Development Levy at a rate of 1.5 per cent.
The commodity also attracts import duty at a rate of 25 per cent of the total cost.
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