Kenyan households are likely to pay more for cooking gas due to a sharp rise in international propane and butane prices. These two components are used to produce liquefied petroleum gas (LPG). The increase in global LPG costs is linked to disruptions caused by the conflict in the Middle East. This is expected to push up prices in the local market.
Data from Saudi Aramco shows that the price of butane rose by 25.8 per cent to $628, up from $499 in August. Propane prices also increased by 23.2 per cent, rising to $494 from $401. Saudi Aramco's LPG contract prices are a key benchmark for the commodity across Middle Eastern and Asia-Pacific markets. Kenya sources most of its LPG from Saudi Arabia and other Middle Eastern producers.
A petroleum sector executive said the increase in the cost of butane and propane would be reflected in local prices. "LPG prices should go up next month, and this mainly boils down to the Saudi Aramco CP. Average prices of butane and propane have significantly gone up this month, and this will affect local prices next month," the executive said.
The latest increase comes months after Kenyan consumers experienced a significant rise in cooking gas prices. Local LPG prices increased by more than Sh390 in May after Saudi Aramco raised its prices in response to the Middle East conflict. Prices later eased slightly as the conflict cooled. However, renewed fighting has disrupted operations at a key Saudi Arabian port used to export petroleum products.
The disruption at the Yanbu port has affected LPG exports, prompting Saudi Aramco to increase propane and butane prices. The Yanbu terminal has also come under attack by Houthi rebels, affecting exports to Asian markets. Shipments from the terminal fell to 71,200 tonnes last month, down from 240,300 tonnes in July and 302,600 tonnes in June.
In Kenya, TotalEnergies Marketing is currently selling a 13-kilogramme cylinder at Sh3,400, down from Sh3,510 in May. At Rubis Energy, the same-size cylinder is retailing at Sh3,202.50, compared with Sh3,530 in May. The expected increase in LPG prices comes as motorists also face the prospect of higher fuel costs next month, with diesel, petrol and kerosene prices also expected to rise.
Unlike petrol, diesel and kerosene, whose monthly prices are set by the State, LPG retail prices are not controlled or capped by the government. The cost of cooking gas is instead determined by market conditions and individual distributors. Despite high prices, demand for cooking gas continued to grow in the six months to June 2026, with LPG consumption rising to 248.82 tonnes during the period.
Key points
- The increase in global LPG costs is linked to disruptions caused by the conflict in the Middle East
- Kenya sources most of its LPG from Saudi Arabia and other Middle Eastern producers
- The expected increase in LPG prices comes as motorists also face the prospect of higher fuel costs next month
