Cooking Gas Cost to Increase by Ksh.350 from July

Kenyans are set to dig deeper into their pockets for cooking gas following a re-introduction of 16 percent Value Added Tax (VAT) on liquefied petroleum gas (LPG) by the government. This means that Kenyans will have to pay an extra Ksh.350 to the usual price from July 1 2021.

“Cooking gas will no longer be zero-rated,” read a statement from Kenya Revenue Authority (KRA).

The decision to impose the tax at the start of the new financial year is likely to add more pain to the common citizen already struggling with the high prices of fuel and electricity. It will also push cooking gas out of the reach of most households struggling with depressed incomes due to the economic effect of the pandemic.

Currently, the 13-kilogram cooking gas retails at 2,250 but after implementation of the VAT it would increase to increase to 2,610 shillings while the 6-kilogram one is likely to rise to 1,350 shillings when the taxes take effect.

This move comes against the backdrop of the Energy and Petroleum Regulatory Authority (EPRA) decision to keep prices for fuel – diesel, petrol and kerosene – unchanged in April after an increase in May sparked widespread public anger from Kenyans.

LPG prices, unlike other petroleum products, are not controlled in Kenya therefore raising concerns that dealers might charge exorbitantly and exploit the situation.

By Fatiha Shabir