Cooking Gas Prices Set to Rise as International Propane and Butane Costs Surge
Kenyans will likely pay more for Liquefied Petroleum Gas (LPG) starting next month after international prices for propane and butane, the two main gases used to produce cooking gas, rose.
The increase is expected to put further pressure on Kenyan households that rely on LPG for cooking, as the higher international prices are likely to be reflected in the local market.
LPG is produced by blending propane and butane, whose international prices are influenced by supply, demand and developments in major producing regions like Saudi Arabia.
Sharp Rise in International Prices
Market data from Saudi Aramco, a key LPG processor and supplier in the Middle East and across Asia, showed butane prices rose by 25.8 per cent from KSh64,620.50 to KSh81,326 in August.
The company’s data also revealed that propane prices rose 23.2 per cent during the same period, from KSh51,929.50 per tonne to KSh63,973.50 per tonne.
Middle East Conflict Disrupts Supply
The price increases come amid renewed conflict involving the United States and Iran, which has disrupted fuel supply routes in the Middle East, particularly the Strait of Hormuz.
The disruptions have also affected Saudi Arabia’s Yanbu port, which serves as an alternative route for fuel shipments when movement through the Strait of Hormuz is affected.
LPG exports from the Yanbu terminal to Asian markets fell from 302,600 tonnes in June to 240,300 tonnes in July, before dropping further to 71,200 tonnes in August.
Preliminary market data further indicate that liquefied petroleum exports are projected to fall to about 51,700 tonnes in September this year.
What Kenyans Currently Pay
Currently, refilling a 6-kilogramme gas cylinder costs between KSh1,100 and KSh1,600, depending on the brand, while a 13-kilogramme cylinder costs between KSh2,200 and KSh3,500.
The latest developments could further tighten LPG supplies to Asian and African markets, including Kenya, which sources a significant share of its cooking gas from the Middle East.
Taifa Gas Terminal Nears Completion
The expected price increase comes as the government moves to complete a major LPG storage facility in Mombasa aimed at strengthening Kenya’s ability to handle and store cooking gas.
Taifa Gas has entered the final stage of construction of its LPG import terminal at the Dongo Kundu Special Economic Zone in Mombasa, with hydrostatic testing underway ahead of commissioning.
The KSh16 billion (€107.5 million) project is expected to become East Africa’s largest LPG storage terminal, with a capacity of 30,000 tonnes stored in 12 spherical pressurised tanks.
The facility also has room for a potential expansion of up to 45,000 tonnes across the 30-acre site.
What This Means for Households
The expected rise in cooking gas prices will add to the financial burden on Kenyan households already grappling with the high cost of living. LPG is the primary cooking fuel for millions of Kenyan families, and any price increase directly affects daily budgets.
Consumers may want to consider refilling their cylinders before the new prices take effect, while the government’s long-term plan to boost local storage capacity could help stabilise supplies and prices in future.