Cooking Gas Refill Prices Set to Rise in October
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Cooking gas prices are expected to rise in Kenya in October following a sharp increase in the international prices of propane and butane, two key components used to produce liquefied petroleum gas (LPG).
According to Data from Saudi Aramco, a major LPG supplier in the Middle East, shows that the price of butane increased by 25.8% to Ksh81,326, up from Ksh64,620.50 in August.
Propane prices also rose by 23.2 % increasing to Ksh63,973 from Ksh51,929.50.
Cooking Gas in Kenya Costs Rose by Over Ksh390 in May
The increase affects Kenya since it sources most of its LPG from Saudi Arabia and other Middle Eastern producers, making international price movements an important factor in the local market.
Additional LPG supplies are obtained through global trading hubs and other African suppliers.
Meanwhile, the latest increase comes after Kenyan consumers experienced higher cooking gas prices earlier in the year.
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Local LPG prices rose by more than Ksh390 in May after Saudi Aramco increased its prices amid disruptions linked to the Middle East conflict. Prices later eased slightly as the situation cooled.
The increase in international LPG prices is expected to put pressure on local suppliers as they purchase additional stocks for the Kenyan market.
A petroleum sector executive said the higher costs would likely be reflected in retail prices from October.
“LPG prices should go up next month, and this mainly boils down to the Saudi Aramco CP (contract prices). Average prices of butane and propane have significantly gone up this month, and this will affect local prices next month,” the executive of a leading oil marketer said.
In Kenya, TotalEnergies Marketing is currently selling a 13-kilogramme cylinder at Ksh3,400, down from Ksh3,510 in May.
At Rubis Energy, the same-size cylinder is retailing at Ksh3,202.50, compared with Ksh3,530 in May.
Disruptions Affect LPG Supply
The latest increase in propane and butane prices has been linked to disruptions affecting petroleum exports from the Middle East.
Renewed fighting between the United States (US) and Iran has reportedly affected operations at a key Saudi Arabian port used to export petroleum products.
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This is after the Yanbu terminal, which Saudi Aramco used as an alternative export route to the Strait of Hormuz, also faced attacks, affecting shipments to Asian markets.
Therefore, shipments from the terminal reportedly fell to 71,200 tonnes in the latest month, compared with 240,300 tonnes in July and 302,600 tonnes in June.
Another oil marketer’s executive said the geopolitical situation was contributing to the rising costs.
“Right now, with the geopolitical dynamics, the cost is going up, and local prices will definitely increase,” the executive said.
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Photo showing Cooking gas Cylinder in a petrol station.Photo/ File