26.8 C
New York
Sunday, May 26, 2024

State unveils plan to stabilize gas prices

The Government through the National Oil Corporation of Kenya now aims at controlling the price of cooking gas in the country which has hit an all time high.

30 percent of cooking gas will be imported by the corporation in a move aimed at forcing the private importers to lower the prices of Liquefied Petroleum Gas(LPG) and the retail price.

This follows the review of regulations that reserve 30 percent of cooking gas imports to the State corporation hence influencing the market prices.

“The Petroleum Products Quota Allocation shall be as set out in the First Schedule and the purpose of the quota allocation will be to ensure price stabilisation in an unregulated pricing regime,” says Energy and Petroleum Regulatory Authority (EPRA).

The Rising Cost

The price of 13 kilogramme of cooking gas retails at sh3400 from sh2250 ahead of the start of government financial year in June where the government will impose 16 percent in tax.

This has caused most of the households to be out of reach of the commodities.

The Russian invasion of Ukraine caused the imposition of Value Added Tax(VAT) and margins by the dealers have combined to cause the high level price of cooking gas in Kenya.

Unlike diesel, petrol and kerosene that are adjusted on 15th of every month, cooking gas is not controlled and as a result the private investors control the market hence dictating the price of commodity.

Nation Oil’s gas imports will be stored at the new Kipevu Oil Terminal, which is nearing completion, and it will enable the government to control the wholesale prices.

Shillah Magret
Shillah Magrethttps://lenyaxmedia.co.ke
Lenyax Media Creatives is a your preferred channel for online news updates, we also offer photography, video documentation, events coverage and live streaming services

Related Articles

Latest Articles