Image: COURTESY
Cooking gas prices have risen over the past few weeks as a result of the government’s move to pursue a crackdown on gas storage and refilling depots early this month.
The decision to go after the illegal operators was triggered by the Embakasi gas filling station explosion on February 2, a tragedy that left at least five people dead and more than 280 injured.
It was later established that the station was operating on an illegal license.
A price spot check by The Star across different estates in the country's capital established the prices of 6 and 13kg fully refilled Liquefied petroleum gas (LPG) cylinders have increased by about Sh150 and Sh200, respectively in three weeks.
A gas vendor in Umoja estate, for instance, said most of their source depots have remained closed since the onset of the crackdown, forcing them to hike prices on increased demand and troubles finding new refilling stations.
"The legally licensed ones are also taking advantage of the situation, hiking the refilling charges," he said.
“Before then, a 6kg gas cylinder was selling at Sh1,150 while the 13kg was going at Sh2,450. We are however now selling at Sh1,300 and Sh2,650, respectively,” the vendor who spoke on condition of anonymity added.
Further surveys across different estates revealed that vendors are now selling the refilled 6kg and 13kg gas cylinders at an average of (Sh1,100-1,250) and (Sh2,300-2,600).
Compared to December last year, this is an increase of about eight per cent, a trend depicting further pressure on consumers.
Nevertheless, the spot check established that petrol station outlets were selling refilled cooking gas cylinders at a much higher price compared to the local vendors.
A Shell petrol station along Thika Road, for instance, is selling the 6kg and 13kg cylinders at Sh1,490 and Sh3,300, respectively.
This is almost similar to National Oil which sells a 13 kg at a price range of (Sh3,100-3,300).
Both outlets noted that the prices have been on the rise compared to the three months to December last year.
Although they did not give a reason for their price increment month-to-date, the local vendors believe that they could also be taking advantage of the crackdown operation.
Consumers’ pain of increasing prices of the commodity could not be easing anytime soon as the regulator, Energy and Petroleum Regulatory Authority (EPRA), promises to tighten the ongoing operation against LPG malpractices throughout the country.
EPRA director general Daniel Kiptoo told the Star that they are committed to conducting more surveillance and enforcement in line with its mandate under the Energy and Petroleum Acts of 2019.
“We have so far heightened our compliance and enforcement to ensure such a disaster, the Embakasi blust, does not recur,” Kiptoo said.
As such, the DG said the authority together with the relevant government agencies and departments has adopted short-term intervention measures aimed at stemming illegalities and ensuring public safety and security.
“Some of the short-term interventions being implemented include, evaluation and closure of facilities within residential areas, closure of facilities classified as 'high risk' based on recommendations from technical audits and suspension of non-compliant facilities, and enhancement of public awareness campaigns on safety.”
Even so, the regulator seems unbothered by uncontrolled pricing of the commodity now used by close to 57 percent of households in the urban centers.
Kiptoo noted that there is no standard price as per current regulation, a point that could further give a sneak peek of prolonged uncensored volatility in LPG market price, largely at the expense of consumers.
"LPG is not currently one of the products within the price control environment," Kiptoo said.
Data by the Kenya National Bureau of Statistics (KNBS) shows gas prices recorded a 1.7 percent jump over last year, on the back of increased global prices and the weakening shilling which made it expensive to import the commodity.
A 13 kg cylinder was refilled at an average Sh3,032 in December last year, according to the statistics body.
This was a marginal increase from an average refilling price of Sh2,980 in December 2022.
The effects of the global prices and the currency depreciation did enough to negate the recent tax cut on the product, meaning the prices had gone back to the level before the government removed the taxes.
The National Treasury through the 2023 Finance Act removed the 16 per cent VAT on LPG in a bid to lower prices.
The commodity's price then dropped, averaging Sh2,800 in July as opposed to Sh3,069 in June, protecting customers from the rising expense of living.
The respite, however, was short-lived as prices soon began to rise again, reaching levels observed before the VAT's elimination.
Subsequently, KNBS attributed the rise in January inflation which moved to 6.9 percent from 6.6 in December, to the price changes in food, energy and transport, which cover about 57 percent of household budgets
In a statement, it said gas, housing, water, electricity and other fuels' Index increased by 1.6 percent between December 2023 and January 2024, mainly due to an increase in prices of 200 kWh and 50 kWh of electricity by 11.4 percent and 13.7 percent, respectively.
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