The government will import 30 percent of cooking gas to control the rising cost of the commodity amid an outcry by Kenyans over high cost of living.
It will be imported through Kenya’s National Oil Corporation with Kenyans rising concerns over the increase in fuel prices.
According to a Business Daily report, the National Oil’s quota is aimed at forcing cash-hungry private importers to lower the cost of Liquefied Petroleum Gas (LPG) and ultimately retail prices
This comes after a review of legislation that provides the state corporation 30 percent of cooking gas imports in order to carry out its job of influencing market prices.
The gas prices have tremendously been on the rise since 2016 when the price of a 13kg cylinder shot to Ksh.2000.
LPG dealers and suppliers in Kenya have already increased the commodity prices due to the shortage of global supply of the commodity as Russia continues her offense against Ukraine.
For example, Rubis Kenya announced its new LPG refill prices will go high, adding on top to the pain an ordinary Kenyan is feeling due to the high cost of living.
Kenyans will now pay Ksh.1560 to refill a 6 kg gas cylinder from the lows of Ksh.1441. The 13kg refill will go for Ksh.3340 from Ksh.3113. The 35kg gas refill dealer price is Ksh.8192 as Kenyans will pay Ksh.8760.
By October 2020, the price for refilling a 13kg cylinder went for Ksh.2445 and in November 2021 it went for Ksh.2513.
The price increase was initially caused by a reintroduction of a 16 percent Value Added Tax (VAT) on LPG, which was scrapped in 2016 to relieve the economic burden on ordinary Kenyans.
Nation Oil’s gas imports will be stored at the new Kipevu Oil Terminal, which is nearing completion, and will strengthen the government’s hand in influencing gas prices through control of wholesale prices
The facility will have a common user berth for LPG and allow the State to also issue open tender system (OTS) for gas imports, prompting the shift to control of cooking gas prices
Under the Open Tender System, the ministry will award one oil marketer the right to import gas in bulk every month on behalf of the entire industry, enjoying huge discounts, like is the case with diesel, petrol and kerosene.