It may now cost you Sh. 400 less to buy cooking gas after the government scrapped 16 per cent value added tax (VAT) on liquefied petroleum gas (LPG) that was reintroduced in 2013.
Currently, refilling a 13-kilogramme cooking gas cylinder will cost you an average of Sh2,252 last month and about Sh1,200 for a 6-kilogramme cylinder.
However, the cost of kerosene is set to go up after the government increased its price by Sh. 6 per litre after the re-introduction of exercise duty on kerosene in an effort aimed at curbing illegal mixing of fuels.
“The removal of the tax on kerosene has since resulted in increased adulteration of fuel in the country. In order to discourage this harmful practice, I propose to introduce excise duty on kerosene at Sh7,205 per 1,000 litres,” said Henry Rotich, the cabinet secretary for the National Treasury.
Currently, a litre of kerosene is going for Sh. 46 in Nairobi.