Economy

Charcoal costs hit new record as cooking gas demand drops

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A charcoal trader in Nairobi. PHOTO | DENNIS ONSONGO

Charcoal prices have hit a new record in a period that has seen demand for cooking gas fall on rising costs.

Data from the Kenya National Bureau of Statistics (KNBS) shows that the price of charcoal in a four-kilogramme tin has steadily risen to an average of Sh81.91, the highest since the agency started making public monthly prices of the commodity in 2007.

Charcoal prices have more than doubled since 2008 when the tin retailed at an average of Sh35, a blow to low-income households.

But gas prices have been rising since March with the 13kg cylinder currently retailing at Sh2,250 from slightly below Sh2,000 in March. This has triggered a drop in consumption from 5,690 tonnes in the three months to March to 3,790 tonnes in the quarter to July, a 33 per cent drop.  

READ: Charcoal costs hit new record amid falling demand for gas

Charcoal dealers reckon that supply of the commodity had drooped during the rainy season amid a rise in demand. The rainy season reduces wood burning and increases the cost of transport.

Gas prices tanked below Sh2,000 last July after the Treasury scrapped value-added tax on cooking gas to cut costs and boost uptake among poor households who mostly rely on charcoal and kerosene.