Kenyans could pay more for Liquefied Petroleum Gas (LPG) from next month after international prices of propane and butane, the two main gases used in cooking gas, increased.
The expected rise could put additional pressure on households that rely on LPG for cooking, with higher import costs likely to affect prices in the local market.
Data from Saudi Aramco shows that butane prices rose by 25.8 per cent in August, increasing from Ksh64,620.50 to Ksh81,326 per tonne.
Gas cylinders. Photo: Courtesy.
Propane prices also increased by 23.2 per cent, from Ksh51,929.50 to Ksh63,973.50 per tonne.
The increases come amid disruptions to fuel supply routes in the Middle East, particularly through the Strait of Hormuz.
The situation has also affected Saudi Arabia’s Yanbu port, an important alternative route for LPG shipments to Asian markets.
LPG exports from Yanbu fell from 302,600 tonnes in June to 240,300 tonnes in July before dropping sharply to 71,200 tonnes in August.
Preliminary data indicates exports could decline further to about 51,700 tonnes in September.
Kenyan consumers currently pay between Ksh1,100 and Ksh1,600 to refill a 6-kilogramme gas cylinder, depending on the brand.
A 13-kilogramme cylinder costs between Ksh2,200 and Ksh3,500.
The supply disruptions could tighten LPG availability in Asian and African markets, including Kenya, which relies on imports from the Middle East to meet part of its cooking gas demand.
The possible price increase comes as the government moves to strengthen the country’s LPG storage capacity through the Taifa Gas terminal at Dongo Kundu Special Economic Zone in Mombasa.
The Ksh16 billion facility is nearing completion, with hydrostatic testing underway ahead of commissioning.
It will have capacity to store 30,000 tonnes of LPG in 12 tanks, with room for expansion to 45,000 tonnes.
