Cooking Gas Cost Kenya: The price of cooking gas prices will from today rise to a six-year high. This is after the National Treasury reintroduced a 16 percent value added tax (VAT) on the LPG.
Starting from today, Kenyans will pay at least Sh. 350 more for the 13-kilogramme cooking gas that will now sell at Sh. 2,600 on average. The cost of the 6 kilogramme cooking gas which is selling at between Sh. 800 and Sh. 1,200 might hit between Sh. 1,150 and Sh. 1,550.
“The effective date of the amendment is 1st July 2021. This means that the supply of liquefied petroleum gas will be subject to VAT at standard rate of 16 percent from 1st July, 2021,” the Kenya Revenue Authority said.
The new tax comes at a time when crude oil prices have hit new highs, piling further pressure on LPG costs.
Martin Chomba, the chair of Petroleum Outlets Association of Kenya, said that LPG sellers would immediately start pushing the extra cost to consumers in order for them to comply with the new tax regulation. “We must remit a 16 percent VAT for every cylinder sold or refilled. It is natural that we will pass the added cost to consumers,” he said .
The sharp rise in the cost of cooking gas will come at a time when Kenyans are already reeling from the pain of high fuel prices. For example, the cost of petrol is currently Sh. 128 per litre while diesel is selling at Sh. 107 per litre.