Despite the high cost of Liquefied Petroleum Gas (LPG) in the country, data shows that Kenyans continue to make purchases.
This is attributed to the government's decision to remove VAT on LPG through the Finance Act 2023 enacted by President William Ruto.
In the latest report, Bi-Annual Energy and Petroleum Report Financial Year 2023/2024 from the Energy and Petroleum Regulatory Authority (EPRA), it's evident that Kenyans bought more LPG gas in 2023 after Ruto took over.
"Demand for Liquefied Petroleum Gas (LPG) increased by 8% to 360,594 metric tonnes in 2023. This increase is attributed to Government initiatives such as the removal of VAT on LPG through the Finance Act 2023," read part of the report.
Per the report, another reason for the increase was the move by the government to implement the LPG growth strategy which aims at increasing per capita consumption of LPG to 15 kilograms per capita by 2030.
According to the statistics, Kenyans consumed 360,594 metric tonnes of the gas which was second highest since 2012. The highest consumption was recorded in 2021, with 373,865 metric tonnes consumed.
Per the report, in 2023, the consumption of LPG was fluctuating, with the lowest consumption recorded in June when only 25,720.42 metric tonnes were consumed.
In the year, Kenyans consumed LPG 34,615.92 tonnes in July. This was a month after President Ruto enacted the Finance Act 2023.
By December 2023, the consumption has steadied above 30,000 metric tonnes. This overall increase in consumption was recorded despite Kenyans complaining of high prices.
While releasing the report, EPRA Director General Daniel Kiptoo revealed that Kenya aims to double per capita consumption by 2030 as part of its commitment to advancing modern and clean cooking solutions.
Still, on the consumption of LPG, data from the Kenya National Bureau of Statistics (KNBS) in March 2024 the average price for a 13-kilogram cylinder rose to Ksh3,231.
This was an increase compared to February and January when the cylinder retailed for Ksh3,187 and Ksh2,600 respectively.
In October after a Cabinet meeting, the government proposed the removal of the taxes on locally manufactured cylinders, LPG products and the cost of the cylinder revalidation.
