Vivo Energy has signaled a new round of price war that is expected to tilt prices among cooking gas dealers.
Total recently, marginally reduced the price of its cooking gas, much of which is sold in cylinders with varying measurements.
In a briefing on Wednesday, Vivo said it would not relent on the aggressive pricing in the liquefied petroleum gas segment.
The price reduction will be done through a campaign – Shell Gas Refill Nyongeza – with prices slashed by an average of Shs20,000.
The price of a 6 kilogramme cylinder for Shell gas will now cost Shs44,000 from Shs49,000 while a 12 kilogramme cylinder will go for Shs86,000 from Shs96,000.
The 45 kilogramme cylinder will now go for Shs247,000 from Shs267,000.
The price revision comes just a day after Total announced new prices on its website and social media platforms.
For instance, Total indicated that it had cut prices for refilling a 6 kilogramme cylinder at Shs49,000, while refilling a the 12 kilogramme cylinder would cost Shs100,000.
The 38 kilogramme cylinder will cost Shs225,000.
Both Vivo Energy and Total take the lion’s share of the market although there is no data to show who leads.
This comes when Fortune Gas Africa, a new liquefied petroleum gas distributor just launched in Uganda.
Mr Moses Kebba, the Vivo marketing manager, said the campaign is intended to ease the financial strain on customers.
Government recently announced a waiver on valued added tax payable on cooking gas, which according to Mr Kebba, is likely to promote the use of gas.
“We applaud this move to make cooking gas affordable, especially during this period where the economy has been hit hard with the Covid-19,” he said.
Mr Marvin Kagoro, the Total marketing and communications manager, yesterday said the price cuts were a response to government’s waiver on VAT.
“When government waived taxes, we were obliged to drop the prices to our customers, we think liquefied petroleum gas is now affordable and more people will come on board,” he said.
Cause of deforestation
Uganda loses an estimated 100,000 hectares of forest cover annually, which is mainly attributed to wood based cooking energy such as charcoal and firewood, options that many look at as a cheaper cooking option. Cooking gas is mainly a reserve of a few Ugandans.
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