Kenyans should expect cooking gas prices to rise this month. The 13 Kgs gas is expected to retail at 2,600 Kenya shillings as the treasury re-instates Value Added Tax on the commodity.
The price increase was to take effect in July 2020 but was delayed by one year owing to concerns about Kenyan’s cost of living at the time. KRA opted to impose the Value Added Tax on gas at the start of the new financial year.
Unlike other commodities such as fuel and electricity, Kenyans expected cooking gas prices to rise. To their relief, prices were maintained throughout 2019 and 2020 despite crude oil’s instability globally. The average cost of 13kgs refill has been averaging 2000 and 2100 Kenya Shillings but will now rise by 400 Kenya Shillings.
The Petroleum Outlets Association of Kenya chairman confirmed the price change earlier today. He told reporters that they must remit 16% VAT for each gas cylinder whether refilled or sold.
These changes come at a time when inflation has hit a high of 6.32 percent largely owing to food, fuel, and electricity prices. This will strain households more especially those that have suffered a salary pay cut, or job loss due to COVID-19.