This archive report was first published on 6 January 2020.
As of 1st January 2020, the new regulations governing the supply and retail of Liquified Petroleum Gas (LPG) have taken effect, despite consumers expressing concerns about the impact on their options.
According to the Energy and Petroleum Regulation Authority (EPRA), the regulations were passed into law in June 2019, with a six-month grace period for retailers to comply, which ended on 31st December 2019.
The new regulations require all gas retailers to register their businesses and obtain valid licences from EPRA or its licensing agents. These licences are valid for three years for jetty, pipeline, bulk storage facility, and liquefied petroleum gas reticulation system, while retail liquefied petroleum gas cylinders are licensed for two years.
Additionally, each business location must be specific to the authorised cylinder brands only, and providers will licence distributors who are limited to giving permits to six dealers.
Those who fail to comply with the regulations face fines of up to KSh10 million, imprisonment of five years or more, or the withdrawal of their operating licence.
Consumer groups, such as Cofek, had warned that the new laws would promote monopoly and increase the cost of the product, as it would restrict the business to merchants such as petrol stations.
As a result of the closures, consumers are now left with limited options, and it remains to be seen how the new regulations will affect the market.
