Sunday, January 5, 2025

Government slaps LPG traders with new demands

Cost of Cooking Gas in Kenya

The government has announced new regulations targeting the Liquefied Petroleum Gas (LPG) business, seeking to enhance safety and accountability in the sector.

The regulations announced by Energy Cabinet Secretary Opiyo Wandayi restrict refilling LPG cylinders between 6:00 a.m. and 6:00 p.m. unless otherwise authorized by the Energy and Petroleum Regulatory Authority (EPRA).

Additionally, autogas stations must adhere to specific operational hours determined by EPRA’s local guidelines.

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According to Wandayi, traders in the gas business will also be required to operate with proper licensing or permits, failure to which they will be slapped with huge penalties and also face closure of the business.

The CS further warned that non-compliance with safety measures like fire extinguishers, emergency controls, or storage standards may lead to hefty fines and operational shutdowns.

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“Non-compliance could see sector players facing licence suspensions of up to nine months or, in severe cases, permanent revocation,” he warned.

The announcement comes in the wake of several incidents linked to illegal LPG refilling and substandard gas cylinders, which have resulted in property damage and the loss of lives.

The directive has however received a backlash from the energy sector players who fear that the time restriction for operation at between 0600-1800 will limit operations and affect the supply and demand chain.

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Additionally, concerns have been raised over the increase in the number of gas cylinder owners from 30,000 to 70,000 under the proposed regulations, which stakeholders believe could discourage investment in the sector.

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