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Economy

Cooking gas hits 16-month high in Dec as inflation falls

Cooking gas cylinders December cost is the highest since last June. FILE PHOTO | NMG
Cooking gas cylinders December cost is the highest since last June. FILE PHOTO | NMG 

Cooking gas prices closed the year rallying after hitting a 16-month high in December and returning consumers to levels seen before the removal of value-added tax (VAT) on clean fuel.

Official data shows that the cost of refilling a 13-kg gas cylinder rose to an average of Sh2,141 in December, up from Sh2,128 a month earlier, Sh2,140 in October and 2,094 in September.

December cost is the highest since last June when the Treasury scrapped VAT on gas to cut costs and boost uptake among poor households that rely on dirty kerosene and charcoal for cooking.

Prices stood at an average of Sh2,229 in June, and dropped to below Sh2,000 in July, a month after the scrapping of the 16 per cent VAT.