Prices Of Cooking Gas Drop As Government Scraps Three Taxes

The prices of Cooking gas have dropped below the 3000 shillings mark for the 13-kg cylinder for the first time since July after the government scrapped three taxes on the commodity.

The majority of the gas traders noted that the price slash is attributed to the removal by the government of Liquefied Petroleum Gas (LPG) levies. Initially, the cooking gas in Nairobi county was retailing at 3,500 shillings for 13kg and 1,500 shillings for 6 kilograms of the product.

During the month of early July, after the taxes were removed, the gas market took a turn where the 13-kg cylinder was going for 3000 shillings while the 6-kg gas was retailing at 1,350 shillings.

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Currently, a 13kg gas cylinder is going for 2500 shillings while a 6kg gas cylinder going for 1100 shillings

Through the Finance Act President William Ruto exempted cooking gas from the 8.0 percent Value Added Tax (VAT), the 3.5 percent Import Declaration Fees, and the 2.0 percent Railway Development Levy. The taxes are against last month’s court order that suspended the Finance Act, of 2023.

“The cost of refiling gas cylinders has gone down mainly due to the removal of taxes,” said Energy Petroleum Regulatory Authority director-general Daniel Kiptoo.

In February, President Willliam Ruto pledged to remove the tax on cooking gas with an aim to eliminate the use of wood fuel. He directed Energy CS Davis Chirchir to start working to ensure that the plan is actualized.

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The President further said he targets to have every household in the country use subsidized cooking gas for a period of three years. He said 70 percent of Kenyans currently are using firewood to cook, this being mostly women.

The president was speaking during the launch of the construction of the Taifa Gas LPG terminal in Dongo Kundu, Mombasa on Friday, Ruto added that this has led to health complications from the smoke.

Ruto said the deduction on the cost of gas will result in health safety for Kenyans and restoration of the environment by reducing the number of trees fallen for firewood and charcoal.

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