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Asked by tend20fen to Sally, Mmboyi, Mike, Michael, Jacinta, Gliday, Elkana, Edna, Arnold on 17 Jul 2025.
Question: Why is gas so expensive
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Michael Kimwele answered on 17 Jul 2025:
Gas is expensive in Kenya due to a combination of global and local factors. Internationally, fluctuations in crude oil prices, driven by geopolitical tensions, supply chain disruptions, and decisions by oil-producing countries (like OPEC), directly impact fuel costs. Locally, high taxation and levies imposed by the government—such as the Petroleum Development Levy, VAT, and other regulatory charges—significantly increase retail prices. Additionally, the weakening Kenyan shilling against the U.S. dollar makes imports more costly, as fuel is priced in dollars. Limited local refining capacity and dependency on imported petroleum products also contribute to high distribution and logistics costs, further driving up prices for consumers.
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Sally Odunga answered on 17 Jul 2025:
Gas is expensive because of several reasons. First, Kenya imports most of its gas, so when prices go up in other countries, they go up here too. Second, the government adds taxes, and it also costs money to transport gas to petrol stations. Third, gas is bought using US dollars, so if the Kenyan shilling is weak, it becomes more expensive. Lastly, if there are delays or problems in getting gas into the country, the supply goes down and prices go up. All these things together make gas more costly.
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