Cooking gas prices have dropped by between Sh100 and Sh250 as a result of the reduction in Value Added Tax from 16% to 8%.
The VAT review was completed two weeks ago, but the new retail prices were not announced until Monday.
The price decrease follows the passage of the Finance Act of 2022, which reviewed the VAT on LPG (LPG).
This comes as a relief for most Kenyan households who had turned to charcoal and kerosene after the National Treasury reinstated the 16% tax in July 2021.
Cooking gas prices are not regulated by the Energy and Petroleum Regulatory Authority.
This means that its pricing is determined by market forces such as demand and supply, which allows dealers to price their products in accordance with market dynamics.
