Cooking Gas Prices Surge by Sh390 in Nairobi

Why It Matters

The price hike raises household energy costs and could curb LPG adoption, undermining Kenya’s clean‑cooking agenda and adding inflationary pressure to the broader economy.

Key Takeaways

• Rubis Kenya lifts 13 kg LPG price to Sh 3,530 ($32.5)
• TotalEnergies price rises to Sh 3,510 ($32.4), up 12%
• Saudi Aramco hikes propane to $750/tonne, butane to $800
• Strait of Hormuz blockade adds freight costs, tightening supply
• Higher LPG costs threaten demand among low‑income Kenyan households

Pulse Analysis

The ongoing US‑Israel‑Iran confrontation has rippled through the global LPG market, where Saudi Aramco and Algeria’s Sonatrach dominate supply. By early April, Aramco lifted propane contracts by $205 per tonne and butane by $260, pushing benchmark prices to $750 and $800 respectively. These hikes, compounded by a blockade of the Strait of Hormuz—through which roughly 25% of the world’s oil passes—have inflated freight rates, tightening the supply chain for liquefied petroleum gas worldwide.

In Kenya, the effects are immediate and palpable. Rubis Energie Kenya and TotalEnergies Marketing Kenya raised the retail price of a 13‑kg LPG cylinder to roughly Sh 3,530 ($32.5) and Sh 3,510 ($32.4), a 12% jump from the previous Sh 3,140 level. The increase arrives just as diesel and petrol have risen by about Sh 30 per litre, squeezing both consumers and businesses that rely on fuel for transport, agriculture, and power generation. Although the government exempted LPG from VAT, import declaration fees, and the railway levy, the market remains exposed to external price shocks, leaving households—particularly those in the low‑income bracket—vulnerable.

Looking ahead, the surge could dampen the strong growth Kenya has seen in LPG consumption, which rose 14.7% to nearly 476,000 tonnes last year. Persistent supply constraints and higher freight costs may curb further adoption, challenging the country’s clean‑cooking objectives. Policymakers may need to consider additional subsidies or strategic reserves to buffer future volatility, while importers could explore diversified sourcing to mitigate reliance on Gulf‑based suppliers.