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President Ruto announces plans to make cooking gas tax-free

Hours after president announcement of all tax removal imposed on cooking gas, Kenyans, however, said the price of this valuable commodities remains unchanged.

Reports indicated that a six kg cylinder that was previously sold for Ksh1,800 surged to Ksh2,600.

In comparison, a 13kg cylinder that previously retailed at Ksh2,600 increased to Ksh3,100 in Nairobi and other neighboring towns like Kiambu and Machakos.

Informing Kenyans of the changes, local retailers contacted their customers, stating that the increase in gas prices resulted from government regulatory measures.

“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. 

According to survey conducted, a 13-kg gas is retailing at Sh2,880 at Rubis Energy’s outlets and Sh3,100 at Shell stations. The two marketers are selling the six-kilogramme commodity at Sh1,350 and Sh1,440, respectively.

State-owned National Oil Corporation of Kenya is selling the six-kilogramme gas at Sh1,400 and the 13kg cylinder at Sh3,050.

Oil marketers increased prices from an average of Sh2,250 for the 13-kg gas and Sh950 for the six-kilogramme commodity, attributing the hikes to a combination of the re-introduction of VAT and a global rally in the costs of crude.

Speaking in Dongo Kundu in Mombasa county on Friday, February 24, 2023, the country's first in command asserted that his administration will ensure that every Kenyan household has access to cooking gas by making it affordable.

President Ruto continue to say the construction of the Taifa Gas facility offers Kenya an opportunity to lower cooking gas costs in the absence of price controls.

LPG prices have hit new highs, with the 13-kilogramme container retailing at an average price of Sh3,266 in Nairobi, while the six-kilogramme one has crossed Sh2,000.

It is unclear what Agol charges oil firms for handling cooking gas, but the lack of other players in the business suggests a lack of significant competition that has kept the fees high.

Taifa Gas is Tanzania’s largest LPG supply company and has been feeding the Kenyan retail market via road.

Ruto also stated that the move would help in environment preservation by eliminating the use of wood fuel in Kenyan households. He also noted that the move must be fully implemented within the next three years.

"Every Kenyan household will have access to cooking gas, and we will ensure that the gas prices reduce by removing all taxes on cooking gas.

In that way we can make sure that every household in the republic of Kenya has access to gas for cooking, and we can eliminate the use of wood fuel, the challenges of health and also restore our environment,” president William Ruto said.

Content created and supplied by: NATIONALDAILYNEWS (via Opera News )


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