This archive report was first published on 8 January 2020.
On January 8, 2020, the Energy and Petroleum Regulatory Authority (EPRA) implemented new regulations for the liquefied petroleum gas (LPG) sector, which critics argue favor large oil marketing companies (OMCs) over small retailers.
The Liquefied Petroleum Gas (LPG) Act, 2019, requires resellers to have express authority from the OMC or cylinder owner to handle the product, effectively limiting the role of small players in the market.
While the regulations aim to address safety concerns, they have been met with skepticism by small retailers and consumers, who fear that the dominant OMCs will continue to dictate prices and control the market.
EPRA Director-General Pavel Oimeke expressed confidence that the multiplicity of licensed players would keep prices stable, but critics argue that this is unlikely given the dominance of large players.
To address these concerns, the State should consider providing depot services and imposing sanctions on dominant players who abuse their positions, ensuring a level playing field for small retailers and consumers.
