June 24, 2024
Kenyan consumers are likely to benefit from lower Liquefied Petroleum Gas

Ruto Reveals Gov’t Talks with Saudi Company For Lower Cooking Gas Price

Kenyan consumers are likely to benefit from lower Liquefied Petroleum Gas (LPG) gas prices if talks between the Kenyan government and Saudi Aramco, a Saudi Arabian business, are successfully concluded.

Bloomberg originally reported on Monday that Kenya was interested in acquiring a floating LPG facility near Mombasa.

According to Kenya Pipeline Company CEO Joe Sang, the facility would process up to 30,000 tons of petroleum.

The facility will be temporary until the government begins the process of constructing a permanent LPG processing plant, whose tender will be issued in two months.

According to Sang, if a deal is signed, the plant will increase the supply of locally produced cooking gas by 30,000 tonnes, lowering gas prices.

The plant is anticipated to support Taifa Gas Company, which debuted in February 2023. The specifics of the transaction, however, have not been disclosed.

Since entering office, President William Ruto has made it clear that increasing clean energy is part of his agenda.

Last year’s Finance Bill removed three levies levied on the commodity, including an 8% Value Added Tax.

Other taxes avoided included the 3.5% Import Declaration Fee and the 2% Railway Development Levy.

At the time, the Energy Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo, ascribed the relative decline in LPG prices to the radical decision to eliminate certain levies.

At the time, vendors reported that the price of a 13kg cylinder had reduced from Ksh3,000 to Ksh2,500.

At the start of 2023, the Head of State also vowed to implement a method to cut the cost of a cooking gas cylinder from Ksh2,800 to Ksh300.

At the time, the proposal, which has yet to take effect, was intended to reduce the cost of living.

He also asked the Ministry of Interior to begin the registration of all gas refilling stations to guarantee that they are licensed.

“By 2025, we expect all our schools and other institutions to have put in place mechanisms that ensure a modern way of cooking by cooking gas,” he stated.

The government is likewise keen to introduce piped gas to houses for further lower costs.

Ruto Reveals Gov’t Talks with Saudi Company For Lower Cooking Gas Price

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