This archive report was first published on 23 October 2019.
Kenya's government has taken a significant step towards controlling the cost of cooking gas in the country. The Energy and Petroleum Regulatory Authority (EPRA) has announced plans to regulate the price of liquefied petroleum gas (LPG), with new prices set to be published next month.
According to EPRA, the new prices will be used by distributors and retailers to calculate the price of LPG, which is a major step towards controlling the cost of the product in the Kenyan market.
The introduction of price controls on cooking gas has been a topic of debate since the government started capping prices of super petrol, diesel, and kerosene in 2010. Despite strong resistance from oil marketers, the government remains committed to regulating the cost of cooking gas.
EPRA chief Pavel Oimeke has stated that the country will have to wait until a common liquefied petroleum gas pool and an open tendering system for LPG is implemented before the new pricing formula can be put in place.
Additionally, new regulations on the sale and transport of LPG cylinders will take effect at the end of December this year. The regulations ban the sale and transport of LPG without a valid license from EPRA and written consent from the distributors of the product.
As a result, the current mandatory cylinder pool exchange made up of 50 marketers will be disbanded and replaced by a new system made up of oil marketers who will have to agree on new marketing and pricing plans.
