Gas, Milk Prices Down, Any Other Commodity Price is Likely to Contract?

Kenyans should breathe a sigh of relief after the price of various household commodities reduces. Milk is the recent commodity that has decreased in price on the back of increased supply. Consumers are now purchasing a packet of fresh milk at an average of 55 shillings from 60 shillings last month.

The Kenya Dairy Board (KDB) confirmed that production normalcy is slightly rebounding following the rains which have accelerated the revival of grass which is used by many farmers as livestock feed. The prices are expected to drop further if production continues with its upward trend.

Cooking gas prices have also gone down, coming as a relief to Kenyans who have struggled with the high cost of the commodity in the last four months. The government lowered the tax imposed on the commodity by 50 percent giving consumers a huge relief amid the global price upraise in gases and petroleum products.

The 6kg cylinder of pro gas is currently retailing at 1,400 from 1, 600 shillings while the 13 kg cylinder is retailing at 3,000 shillings from 3,200 shillings last month.

Kenyans can also celebrate as the price of bar soap has also decreased. The 800g of Jamaa Cream Bar Soap is now retailing at 199 shillings at Naivas supermarket, down from an average of 230 shillings last month.

Kenyans have been taking to social media on the increased prices of common goods, with cooking oil and maize flour recording a historic high. The government through the ministry of agriculture on Monday announced that maize flour prices would come down from 230 shillings to 100 shillings for a 2kg bag.

This is after the government subsidized the cost of production of the commodity for a period of four weeks. With the subsidy, the 500 grams bag of the commodity would retail at 30 shillings while 55kg would go for 2,250 shillings.

However, the price decline has not yet been reflected in supermarkets and other outlets. It emerged that the ministry leaked the information before the millers’ nod to the deal. This will see Kenyans continue to purchase the commodity at double the price promised by the ministry of agriculture.

Cooking oil is the other commodity that still continues with its upward trend. For instance, a liter of Fresh Fri cooking oil is selling from an average of 397 shillings to 436 shillings in various supermarkets. Earlier this month, cooking oil manufacturers noted the possibility of price contraction of the commodity by the end of July, following a correction in the prices of crude and palm oil in the global market.

Indonesia is the global leader in palm oil exports, a key input in the manufacturing of cooking oil. Most of Kenya’s palm oil comes from Indonesia, where the two islands of Borneo and Sumatra, some of the world’s biggest palm oil suppliers, are.

Malaysia is the second biggest market for Kenya’s palm oil. Its benchmark palm oil prices are also expected to come down by the end of this month, signaling cheaper products if importers and manufacturers pass the benefits to the consumers.

“Yes, the price is going down significantly….One week to two weeks process must reflect in Kenya,” an official within the country’s manufacturing industry lobby-Kenya Association of Manufacturers said earlier this month.

Palm oil is also used in the manufacture of other commodities such as detergent, chocolate, noodles, and cosmetics, an indication that prices of these products might come down as well.

Other basic commodities such as wheat flour, salt, tissue paper, and sugar are still also on an upward trend.