Relief as cooking gas prices drop after tax cuts

For the first time since July, the price of a 13-kg cylinder of cooking gas has fallen below Ksh3,000 after the State eliminated three tariffs on the product that are currently the subject of a legal dispute.
Cooking gas is no longer subject to the 8.0% Value Added Tax (VAT), the 3.5% Import Declaration Fees, or the 2.0% Railway Development Levy thanks to the Finance Act, which was passed by President William Ruto’s government.
The taxes go against the court decision suspending the Finance Act of 2023 from last month.
According to Daniel Kiptoo, director-general of the Energy Petroleum Regulatory Authority, “the cost of refiling gas cylinders has gone down primarily due to the removal of taxes.”
As a result of the recent pricing adjustments, Rubis Energy, who sells products bearing the Shell brand, is now charging Ksh2,490 for 13 kilograms of K-Gas while charging Ksh1,060 for six kilograms.
The 13kg LPG and the 6kg commodities were being sold by Rubis for Ksh2,800 and Ksh1,260, respectively.
The price of a 13-kg cylinder from Shell/Vivo’s Afrigas is Ksh2,780, and filling a 6-kg cylinder again currently costs Ksh1,190.
Before the taxes were eliminated, the oil marketer was charging Ksh3,300 and Ksh1,350 for the 13- and 6-kilogram portions of the commodity.
The 13 kilogram and 6 kilogram cylinders are being refilled by TotalEnergies for Ksh2,900 and Ksh1,280, respectively.
Before the tax exemption, it was selling the 13 and 6 kilogram portions of the commodities for Ksh3,300 and Ksh1,540, respectively.