Cooking gas demand jumps despite looming price shock

KCB Head of Oil & Gas Noreen Araka, Energy CS Opiyo Wandayi, PIEA Chairman Solomon Osundwa and KCB Director Corporate Banking Peter Ng'eno during quarter two 2026 state of the oil industry briefing on June 29, 2026. [Wilberforce Okwiri, Standard]

Kenyan households sharply increased their consumption of cooking gas in the first three months of 2026, an indication of growing adoption of cleaner cooking fuel. However, that momentum could come under pressure following the Middle East conflict, which has disrupted global energy supplies and driven up international fuel prices.

New data from the Petroleum Institute of East Africa (PIEA) shows that consumption of Liquefied Petroleum Gas (LPG) rose by 17.7 per cent to hit 123,974 metric tonnes in the quarter that ended in March 2026, up from 105,326 metric tonnes during the same period a year earlier.

The institute noted that this demonstrated sustained growth in demand for cleaner household and commercial energy.

“The strong first-quarter performance builds on the robust growth recorded in 2024 and 2025, suggesting that LPG demand remains resilient despite prevailing economic conditions,” said PIEA in the report.

“The continued uptake of LPG is expected to further reduce dependence on biomass fuels and kerosene, contributing to improved environmental outcomes, enhanced public health and increased household access to clean cooking energy.”

The lobby says the sustained growth in LPG consumption underscores continued progress towards Kenya’s clean cooking agenda and supports the country’s broader energy transition objectives. 

The growth momentum might have however, been affected over the period to June this year as retail costs were pushed up by the effects of the US-Israel war on Iran as well as a recent tax hike on LPG. 

The cost of refilling a 13 kilogrammes gas cylinder hit Sh3,360 in April 2026 up from Sh3,100 in March, according to data by the Kenya National Bureau of Statistics (KNBS). A spot check showed that the cost has gone further up in recent weeks, with some outlets refilling the 13kg cylinder at Sh3,500 this week. 

The higher retail costs are on account of the impact of the conflict in the Middle East, where Kenya sources most of its petroleum products, including LPG. The crisis in the region disrupted export of petroleum products from the Middle East, driving global fuel prices to record highs due to threats to shipping through the Strait of Hormuz, where about 30 per cent of global seaborne LPG passes through.

The government has also recently increased the Petroleum Development Levy on cooking gas to Sh5.40 per kilogramme from 40 cents, setting up Kenyans for higher costs while possibly driving others back to use of dirty fuels such as charcoal and firewood. 

The hike in PDL has been a reversal of government’s refrain from taxing LPG, including withdrawal of VAT in 2023 and more recently tax breaks for firms building LPG storage facilities in the Finance Act 2026.

The refrain has resulted in consumption of cooking gas in Kenya more than triple over the last decade to reach 475,950 metric tonnes in 2025 up from 150,000 metric tonnes in 2014. 

PIEA also noted that there was an overall 2.6 per cent decline in consumption petroleum products over the first quarter compared to a similar period last year. Diesel usage grew 9.9 per cent, super petrol (nine per cent), kerosene (11 per cent) while jet fuel consumption dropped 9.5 per cent

“Jet Fuel and Fuel Oil moderated overall growth, registering declines of 9.5 per cent and 10.6 per cent respectively, compared to Q1 2025. The decline may reflect softer aviation fuel demand and reduced industrial or marine fuel consumption during the period under review,” said PIEA.

Over the second, consumption is likely to  have been affected by high prices following the crisis in the Middle East.