Tuesday, August 9, 2022

Total refuses to cut cooking gas prices despite VAT reduction

Oil and cooking gas seller Total has failed to cut cooking gas prices a month after the National Treasury started to implement a VAT reduction on gas.

Under the brand TotalEnergies Marketing Kenya, this company is still selling its cooking gas at the same prices it was selling at prior to the slash in VAT.

Reports say that TotalEnergies has kept its LPG cooking gas prices at Sh. 3,330 for the 13-kilogramme gas and Sh. 1,540 for the six-kg cylinder.

However, TotalEnergies’ rivals, Rubis Energy and Vivo — retailers of Shell branded products — are selling their LPG cooking gas at up to Sh. 450 lower.

“The 13-kg gas is retailing at Sh. 2,880 at Rubis Energy’s outlets and Sh. 3,100 at Shell stations. The two marketers are selling the six-kilogramme commodity at Sh. 1,350 and Sh. 1,440, respectively,” a report in the media cited.

“State-owned National Oil Corporation of Kenya is selling the six-kilogramme gas at Sh. 1,400 and the 13kg cylinder at Sh. 3,050.”

Consumers of gas from Total are stuck with the company since they are unable to exchange their gas cylinders. This is because the law currently prohibits the exchange of cooking gas cylinders.

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The VAT reduction came through the Finance Act of 2022 which slashed VAT by 50 per cent from 16 per cent to 8 per cent.

“Section 5 of the Value Added Tax Act, 2013 is amended in sub-section 2 by adding the following new paragraph immediately after paragraph(aa)-(ab) in the case of the supply of liquefied petroleum gas including propane; eight per cent,” the Finance Act of 2022 stated.

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