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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.

The price has, however, recently been on a steady climb from Sh1,989 in January last year, to  Sh2,063 in April and a 16-month high of Sh2,141 last month, according to the Kenya National Bureau of Statistics.

The rise happened in an environment of lower inflation which dropped to 4.50 per cent in December from 4.73 per cent a month earlier.

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