Despite the Government dropping taxes on cooking gas in 2005, supply of the same has not reflected the move. This has majorly been attributed low supply due to storage issues.
LPG usage has been curtailed by lack of enough storage capacity that stands at 3,960 tonnes, comprising 1,250 tonnes LPG tanks at the Kenya Petroleum Refinery Limited (KPRL), 1,300 tonnes at Shimanzi Oil Terminal, and 1,410 tonnes owned by the oil marketers.
Apart from the Mombasa facility, Kenya Pipeline Company has revived plans to build inland bulk LPG storage and bottling facilities.
In January KPC floated a tender for a feasibility study on demand of LPG in the East Africa region and preliminary design of the necessary infrastructure within Kenya to meet growing demand.
The new study will be an updated version of another study conducted in 2004 by Petroleum Development Consultants that recommended development of LPG facilities in Mombasa (6,000 tons), Nairobi (2,000 tonnes), Nakuru (150 tonnes), Eldoret (200 tonnes), Kisumu (300 tonnes) and Sagana (50 tonnes). (The Standard)
The government has been blamed for refusing to reduce a 15 per cent surcharge on LPG imported through neighbouring countries despite protracted calls by marketers.
The Energy Regulatory Commission has proposed to control prices of LPG which it projects to cause drops in prices of up to 50%.Also read : ERC to Start Regulating Cooking Gas Prices
The cost of refilling a 6Kg gas cylinder currently stands at KES 2,900 in most outlets, up from KES 1,200 a year ago, while the cost of refilling the 13 kg cylinder is KES 4,500, up from KES 2,400 a year ago.