Price Of Gas Set To Go Up As Gov’t Introduces New Taxes

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LPG cylinders PHOTO/COURTESY

As Kenyans continue to struggle with the high cost of living, a looming cooking gas shortage is expected to hit the country.

This is after the government increased taxed on imported Liquefied petroleum gas (LPG) by more than KSh 38,000.

At the same time, a truck bringing in LPG has from Tanzania has been denied entry into the country until traders of the precious commodity pay the new taxes.

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A report on Citizen Digital showed that the Kenya Revenue Authority (KRA) increased levies from KSh 70,000 per ton of LPG to KSh 108,000 per ton of LPG.

This new development comes even as LPG dealers argue that they were not given a notice on the increased taxes.

Also Read: Rostam Aziz: The Tanzanian Billionaire Who Is Bringing Cheap Gas To Kenya

“We were not given any notice by KRA about the increase of the taxes, our trucks were just stopped at the border with customs demanding extra monies,” said Yusuf Hussein, the chairman Independent Gas Dealers Association.

Gas dealers have warned that should KRA impose the new taxes, they will be forced to hike gas prices.

The 6-kilogram gas which currently retails at KSh 1,200 will be pushed to KSh 1,500 while the 13-kilogram gas which goes for at KSh 3,000 will retail at KSh 3,500.

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“At the end of the day we are a business, if KRA pushes a cost to us, we have no option but to forward the same to our customers,” Hussein added.

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