Kenyans' Demand For Cooking Gas Rises Despite Increase In Prices

• The Kenya National Bureau of Statistics (KNBS) data showed that the cost of cooking gas increased in the first quarter of 2024
• However, the Energy and Petroleum Regulatory Authority (EPRA) noted an increase in Liquefied Petroleum Gas (LPG) demand in the second half of 2023
• EPRA attributed this to the government's move to reduce VAT tax on LPG from 16% to 8%, as contained in the Finance Act 2023

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Most Kenyans are now using cooking gas, a move that has seen its demand in the market increase.

The Energy and Petroleum Regulatory Authority (EPRA) announced a surge in Liquefied Petroleum Gas (LPG) demand since July 2023.

Why there's high demand for cooking gas

In its Bi-Annual Energy and Petroleum Statistics Report for the year 2023/24, EPRA pointed out government measures and interventions in the sector.

EPRA director general Daniel Kiptoo attributed the rise in demand for cooking gas to the reduction of VAT on LPG from 16% to 8%, implemented in the Finance Act 2023.

"Liquefied Petroleum Gas (LPG) demand rose by 8% to 360,594 metric tonnes credited to government initiatives including the removal of VAT on LPG through the Finance Act 2023," said Kiptoo in the report released on Friday, April 12.

The director general also cited per capita consumption, which reached 7kg during the same period under review.

He said the country aims to double per capita consumption to 15kg by 2030 as part of commitments to advancing modern and clean cooking solutions.

What are the current cooking gas prices?

Refilling a 13kg gas cylinder in Kenya cost an average of KSh 3,231.84 in March 2024, up from KSh 3,187.10 in February 2024.

In January, the commodity retailed at an average price of KSh 3,137.70, but the price has been on an upward trajectory.

Data from the Kenya National Bureau of Statistics (KNBS) showed that the prices are lower than the peak of KSh 3,218 reached in June 2022 when disruptions from the Russia-Ukraine war, which began in February of the same year, affected the world economy.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.

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Danie Kiptoo attributed the increase in cooking gas demand to reduction of VAT.

Pain for Kenyans as 6kg, 13kg cooking gas rises to shocking highs

Kenyans' Demand for Cooking Gas Rises Despite Increase in Prices - Tuko