Kenya Increased LPG Consumption by 240%

Kenya Increased LPG Consumption by 240%

Kenya has increased the consumption of Liquefied Petroleum Gas (LPG) by 240%, compared to 2015, amid low global oil prices and the removal of value added tax (VAT) on the commodity, Xinhua reported. The use of LPG in Kenya has been on the rise since January, when it stood at 14,000t, and increased further in the Q1 of 2016 to averaged 15,000t, before swelling further to 16,000t in mid 2016, informed.

Currently, the east African nation is consuming about 17,000t of LPG a month, up from 5,000t in 2015, as households are turning to the fuel cheaper than kerosene, charcoal, or firewood, according to the Kenyan Ministry of Energy.

In addition, in June 2016, the government removed a 16% VAT it had imposed on the fuel to boost consumption. This move lowered the cost of cooking gas by between $18 and $21, for a 13kg cylinder. On the other hand, a 6kg cylinder is sold at an average of $9, with independent suppliers offering it as low as $8.


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