Inflated Flames: Kenya's Cooking Gas Rip-off

This track explores the staggering cost of cooking gas in Kenya and the factors driving these high prices. Sources reveal that Kenyans could be paying more than double the wholesale price for Liquified Petroleum Gas (LPG). Oil marketing companies reportedly purchase LPG at around 97 shillings per kilogram but sell it to consumers for between 226 and 256 shillings per kilogram. For a 13kg cylinder, this translates to purchasing at 1,261 shillings wholesale and selling at 3,160 shillings or even more.

This significant inflation affects the retail price, pushing the cost of cooking gas to two and a half times more than the recommended retail price. This situation is particularly notable as it persists even after the government removed key taxes, including the 8% Value Added Tax, the 2% railway development levy, and the 3.5% import declaration fees on imported LPG. Despite these tax reductions and global price decreases as of May 2025, oil marketing companies have not passed on these savings or provided incentives to Kenyans, drawing criticism for the high rates.

The economic challenge is stark when comparing prices regionally: a Kenyan pays three times more than a Tanzanian, nine times higher than in Uganda, and 23 times higher than in Ethiopia for cooking gas. A major contributing factor highlighted is the lack of price regulation by the Energy and Petroleum Regulatory Authority (EPRA), which currently does not control LPG prices or set specific margin caps for dealers and retailers. This absence of control leads to significant price variations and allows for unusually high margins to be retained by dealers and retailers. EPRA is considering implementing regulations in January 2025 to stabilize prices and protect consumers from exploitative pricing practices. This situation encapsulates the greed reflected in high margins and the impact of ineffective taxation policy removal on the daily economic struggles of Kenyans.