Commodities

Cooking gas firms get nod to exchange cylinders for five years

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Cooking gas vendors in Nyeri. FILE PHOTO | NMG

Suppliers and distributors of liquefied petroleum gas (LPG) have been allowed to mutually exchange their cylinders for a period of five years.

In gazette notice Friday, the Energy Dealers Association (EDA) comprising 32 small-scale suppliers and distributors of cooking gas brands across the country has also been allowed to have their members increase their cylinder count by at least 10,000 per year per depot.

The exemption will see consumers allowed to exchange their empty cylinders with a different brand as long one is a member of the association.

Refill

Members of the association will also refill and resell cylinders among themselves.

“It is notified for general information that the Authority has granted an exemption with respect to exclusive dealing among the members of the Association for a period of five years,’’ the Competition Authority of Kenya (CAK) says.

The revised Energy (Liquefied Petroleum Gas) Regulations of 2009 were effected in June 2019, abolishing the mandatory cylinder exchange pool, putting firms in charge of their cylinders following cases of unsafe refilling.

The association had in February last year requested to be exempted from the rules for 10 years. 

The association had also requested to share information on marketing and pricing prices, which were, however, prohibited as uncompetitive practices.

“Sharing of all other forms of commercially sensitive information including pricing, margins, volumes, input costs, capacity in the market, any specific information about customers, current or future product development plans, and proprietary information including trade secrets, knowhow, technological innovation and other intellectual property will be prohibited,” CAK said.