- Rubis customers will be refilling the 13kg cylinder at Sh3,340 from Sh3,113
- Cooking gas prices are not controlled unlike those of petrol, diesel, and kerosene.
Image: FILE
The Russian - Ukraine crisis has added to the introduction of Value Added Tax (VAT) on liquefied petroleum gas (LPG) to send prices to an all-time high in Kenya.
On Friday, Rubis Energy Kenya reviewed its retail prices, increasing the refilling price of 13 kilogramme cylinder by close to Sh250.
According to the firm, the dealer's price for the 13-kiogramme cylinder was at Sh2,684 before VAT which pushed it to Sh3,113. However, the consumers will be refilling the cylinder at Sh3,340 starting today.
The six kilogramme cylinder will be refilled at Sh1,560 from Sh1,441. Families were refilling the same at Sh1,243 before the introduction of VAT.
Those using the 35 kilogramme cylinder will now have to pay Sh8,760 to refill from Sh8,191, almost Sh600 more.
Prices have jumped 50 per cent over the last year or almost Sh1,000 since January last year -- more than triple the 16 percent value-added tax (VAT) introduced by the government on liquefied petroleum gas (LPG).
A spot check by the Star yesterday showed that other dealers have silently reviewed prices, with a 13-kg cylinder of gas now retailing at an average of Sh3,200.
Kenya’s LPG business is mainly controlled by big players, including Total, Vivo, Rubis, Oil Libya and Africa Gas and Oil (AGOL), which owns Proto gas.
Cooking gas prices are not controlled unlike those of petrol, diesel and kerosene.
Analysts fear further far-reaching implications for the global economy, particularly given Russia’s role as the world’s second-largest producer of natural gas and one of the world’s largest oil-producing nations.
For several months, Russia has been accused of intentionally disrupting gas supplies to leverage its role as a major energy supplier to Europe amid an escalating dispute with Ukraine.
Last week, the International Energy Agency called on Russia to increase gas availability to Europe and ensure storage levels were filled to adequate levels during a period of high winter demand.
This week, the price of Brent crude - the global oil benchmark - surged to more than $119 a barrel at one point, the highest since May 2012.
Yesterday, energy expert Allan Chege asked families to brace for tougher times as the demand for petroleum products heightens.
''Kenya draws its petroleum imports from the Arab Legue. A possible interruption supply in Europe due to the ongoing crisis will push up demand for the Opec products, hence increase in prices,'' Chege said.
Industry players attribute the surge to the 16 percent VAT and global prices.
An increase in fuel prices is likely to further escalate the high cost of living in Kenya. Last month, the country's inflation rose to 5.78 per cent from 5.69 per cent in January.
The Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households, increased by 0.63 per cent from 112.5 in January to 113.3.