This archive report was first published on 6 January 2020.
Published on January 6, 2020, a showdown is brewing between Liquefied Petroleum Gas (LPG) dealers and the national regulatory agency over the implementation of regulations relating to LPG cylinder pool exchange.
The Energy and Petroleum Regulatory Authority (EPRA) has refused to extend the implementation period of the Legal Notice No 100 of 2019, which was set to take effect on June 25, 2019, but was later extended by three months.
The new law, Petroleum Act 2019, requires all LPG retailers, wholesalers, and transporters to hold licenses for each business location following the abolishing of the compulsory LPG cylinder exchange pool.
According to the law, licenses will be specific to the authorized cylinder brands, and retailers are required to obtain prior written consent from brand owners.
Energy Dealers Association (EDA), which controls about 55 percent of the retail market with more than 30 LPG brands across the country, has called for the law to be delayed to June, citing that not all retailers have been issued with relevant licenses from EPRA.
EDA General Secretary Kepher Odongo warned that the implementation of the law starting January will not be plausible, leading to the closure of retailers' shops and/or businesses.
Mr Odongo accused EPRA of double standards, claiming that multinational petrol stations dealing in LPG are allowed to operate without the said licenses.
EPRA Director General Pavel Oimeke, however, maintained that there will be no more extension to the transition period, directing members of the Association to comply with the provisions of the legal notice as gazetted.
