The move has led to an increase of between 10 and 30 per cent in the cost of cooking gas in most parts of the country, compared to a week earlier. In Nairobi’s Eastlands area, the 13-kg cylinders gas refills are going for Sh2,200 compared to Sh2,050 last week, while refills for the 6-kg cylinders commonly known as ‘Mekos’ are going for Sh1,100 from Sh950.
Depot prices of LPG increased from Sh135 to Sh150 per kilogramme in Mount Kenya region increasing refill retail prices for the 6 kilogramme cylinders to over Sh1,200, while the 13-kilogramme cylinders are refilled for more than Sh2,300.
“If I have the commodity, I am the one to determine what price to sell. Most of us are now buying the commodity from the secondary market,” said Linus Gitonga, an LPG operator.
People familiar with the supply chain say that the scenario could have been spiked by reports that the floating African Gas and Oil Company Limited (AGOL) LPG vessel had been swept by raging storms.
Two weeks ago, heavy rains wreaked havoc in most parts of Mombasa as flash floods sweep the coastal town bringing down structures and vehicles as it poured into the ocean.
The AGOL LPG facility was pushed away from its position following a “break-away” – cap being released – as the vessel surged deeper into Indian Ocean. Kenya Ports Authority (KPA) took more than 48 hours to bring the vessel back to its position.
During that period, AGOL’s 5,000 metric tonnes depot was starved of LPG, crippling the market with an estimated 14,000 metric tonnes of the commodity by the time KPA managed to anchor the vessels and install the valve.
Speaking to People Daily, Andrew Kamau Principal Secretary - State Department of Petroleum said, while it’s true the ship had moved from where it had been moored, the said hike in the cost of LPG is a result of people taking advantage of the situation.
“This is a result of panic in the sector as traders try to take advantage of the situation,” he said. “Once people realise there is no shortage, they will release stock and life will go back to normal.”
It is estimated that this situation might go on for up to two weeks before prices stabilise. Apart from the AGOL jetty which is at Miritini, there are other idle LPG jetties at Changamwe and Shimanzi which are operated by Hashi Energy, Vivo Energy, Total Kenya, Oil Libya and the defunct Kenya Oil Refineries Limited.
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