Liquefied Petroleum Gas (LPG) gas costs might help Kenyan consumers if discussions between the Saudi Aramco business and the Kenyan government are productive.
Kenya was reportedly seeking to purchase a floating LPG plant close to the Port of Mombasa, according to a Monday story from Bloomberg.
Kenya Pipeline Company CEO Joe Sang anticipates that the plant will be able to handle up to 30,000 metric tonnes of fuel.
The structure will only be operational temporarily until the nation launches construction of a sustainable LPG processing plant, for which a competitive bid is scheduled to be released in two months.
If an agreement is achieved, the plant will produce an extra 30,000 metric tonnes of locally produced cooking gas, which would reduce gas costs, according to Sang.
“We anticipate that the plant will enhance Taifa Gas Company, which made its debut in February 2023. However, the agreement’s specifics remain undisclosed,” Sang added.
President William Ruto has said unequivocally that encouraging sustainable energy has been a priority of his platform since assuming office.
The Head of State eliminated three levies on the commodity in the Finance Bill of last year, including an eight percent value-added tax (VAT).
The other levies waived were the 2 percent railway development charge and the 3.5 percent import declaration cost.
At the time, Daniel Kiptoo, the director general of the Energy Petroleum Regulatory Authority (EPRA), attributed the relative decrease in the price of LPG to a hasty decision to eliminate some taxes.
At the time, suppliers confirmed that the price of a 13-kg cylinder had decreased from Ksh3,000 to Ksh2,500.
Additionally, the Head of State pledged to implement a system that would lower the price of a cooking gas cylinder from Ksh2,800 to Ksh300 by the beginning of 2023.
The plan’s goal at the time was to lower living expenses, but it hasn’t fully materialised.
In order to make sure that all gas refilling points had licenses, he also gave the Ministry of Interior instructions to start registering them.
“By 2025, we’re expecting all our schools and other institutions to have put in place arrangements that guarantee a modern way of cooking by cooking gas,” he said.
To increase efficiency and save expenses, the administration is also adamant about introducing piped gas for residences.
