City LPG traders fined Sh30m for illegal refills

Daniel Kiptoo Epra

Energy and Petroleum Regulatory Authority (Epra) Director-General Daniel Kiptoo. FILE PHOTO | NMG

Two liquefied petroleum gas (LPG) companies based in Nairobi and a trader have been slapped with a Sh10 million fine each for illegally refilling and transporting cooking gas.

City Gas Limited, Lungalunga Energy and trader Antony Mwaura were nabbed transporting gas without a licence, marking a heightened clampdown by the Energy and Petroleum Regulatory Authority (Epra) on the black market.

The Petroleum (Liquefied Petroleum Gas) Regulations of 2019 slap a fine of not less than Sh10 million for illegal refilling of gas and bulk transportation of the commodity without a license.

Epra director-general Daniel Kiptoo said the firms face further sanctions that include revocation of their licences.

“We are following up with other licensing-related sanctions,” Mr Kiptoo told the Business Daily on Wednesday.

Under the 2019 regulations, it is illegal for a trader to refill LPG into cylinders of another brand unless with prior written consent from the brand owner.

Firms and individuals dealing in bulk transportation of LPG must be licensed by the energy regulator.

The LPG industry is grappling with high rates of illegal refilling of gas prompting gazettement of the regulations three years ago to contain the vice.

The regulations also compel wholesale dealers of LPG to keep gas cylinder records for more than a year with those found in breach facing a fine of Sh50, 000 for each offence. The records include the serial number of each cylinder, date of purchase, and the name of the buyer.

The hefty fines on the three come amid increasing demand for cooking gas that has prompted rogue traders to use underhand tactics to rake in profits.

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