Commodity Watch

Price Of Cooking Gas To Rise By Ksh 500

BY Getrude Mathayo · February 10, 2023 12:02 pm

KEY POINTS

Lake Oil Group which deals in the Lake Gas brand notified its customers that it had increased gas prices by 31 shillings per kilogram.

KEY TAKEAWAYS

Traders and retailers blamed the sharp rise in prices on the weakening Kenya shilling against the dollar. The shilling hit a historic low of 125 shillings units per dollar in February 2023.

Kenyans will continue to brace for the rising cost of living in the country as Consumers of Liquified Petroleum Products (LPG) are hit by an increase of over 500 shillings in refill prices.

Most Kenyans have turned to using charcoal, kerosene, and other alternative energy sources for cooking and other domestic uses. According to reports, a 6 kg cylinder that was previously sold for 1,800 shillings rise to 2,600 shillings.

Other local retailers increased the price of a 6 kg refill from 1,800 shillings to 2,600 shillings, while a 13kg rose from 2,600 shillings to 3,100 shillings. The over 30 percent increase in cooking gas prices saw many Kenyans resort to kerosene and charcoal.

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Early in the month, Lake Oil Group which deals in the Lake Gas brand notified its customers that it had increased gas prices by 31 shillings per kilogram. The company noted the increase was effective immediately, meaning a 13kg cylinder of gas will cost 403 shillings more while the 6kg one will cost 186 shillings more.

“Due to government regulations, gas prices have increased. In case of a reduction, we will let you know,” the message from gas retailers read in part.

However, because the price of cooking gas was not regulated by the Energy and Petroleum Regulatory Authority (EPRA), consumers are at the mercy of market dynamics. Key industry players attributed the increase in gas prices to the weakening of the Kenyan shilling against the US dollar.

Traders and retailers blamed the sharp rise in prices on the weakening Kenya shilling against the dollar. The shilling hit a historic low of 125 shillings units per dollar in February 2023.

They are lamenting that their ventures were greatly affected by the price hikes as customers sought alternatives. Other retailers added that they were forced to pause their business to look for money to refill their cylinders.

According to the Central Bank of Kenya (CBK), the depreciation of the Kenyan currency implies a higher cost in shillings to finance imports. A weak shilling also means the country will incur more in serving foreign debt, which is repaid in dollars and other foreign denominations.