Cooking gas price will drop to Sh300, but president cagey on how
By Alvin.Mwangi, March 3, 2023President William Ruto yesterday announced that cooking gas prices would reduce from Sh2,000 to a minimum of Sh300 by June.
Speaking during International Women’s Day celebrations in Nairobi yesterday, he said the new price would range from Sh300 as a minimum to a maximum of Sh500.
“I have stated that, from the month of June, we will put plans to ensure that women use clean energy. The first thing that we will do is to remove the tax on gas. That eight per cent the government takes will be removed to allow more Kenyans to have cooking gas,” he said.
At the same time he warned unscrupulous business people who were planning on taking advantage of the directive, saying they would be placed under the microscope.
“I must warn those refilling gas because a number refill the gas in substandard cylinders, which have caused a lot of harm.
“These illegal re-fillers must get out of the market as they are putting the lives of our people in danger. Your days are numbered,” the President said.
It is, however, unclear how the drop in prices will be achieved, given the global trends in cost of the commodity.
The average price of LPG around the world is $0.76 (Sh96.52) per litre. Which means, barring all taxes and transportation costs, even if it were to come to Kenya for free, a 13kg cylinder of cooking gas would cost Sh1,264.76.
The differences in prices across countries are due to the various taxes and subsidies for LPG.
All countries have access to the same natural gas prices of international markets but then decide to impose different taxes. As a result, the retail price of LPG is different.
Ruto noted that some of the gas re-fillers are not genuine as they pose to have filled a 6kg cylinder yet the content is 3kg.
He called on the ministries involved to take charge and ensure there is certified cooking gas.
During the launch of Taifa Gas in Dongo Kundu, Ruto pledged to remove the tax on cooking gas to eliminate the use of wood fuel.
He directed Energy CS Davis Chirchir to start working to ensure that the plan is actualised.
Ruto said the government is still deliberating on whether to provide gas cylinders for free or at relatively lower rates to ensure everybody has access to one.