Economy

Reforms target affordable gas for households

oimeke

EPRA director -general Pavel Oimeke. PHOTO | JEFF ANGOTE

Consumers are set to enjoy easy access to Liquefied Petroleum Gas (LPG) or simply cooking gas in new measures Kenya has taken to streamline trade in the segment.

The Energy and Petroleum Regulatory Authority (EPRA) says it plans to change LPG import regime to an open tender system like it has done with other petroleum products, providing a price relief to households.

The agency also plans installation of an LPG testing facility for the commodity imported from Tanzania “not only to boost consumer confidence but also increate supply.”

“The LPG test equipment has been installed at Kenya Bureau of Standards Nairobi laboratories to enable sampling and testing. Regular quality assurance through testing will improve consumer safety during use of LPG,” said EPRA director-general Pavel Oimeke.

There has been low consumer confidence for LPG from Tanzania due to the lack of testing facilities at the Namanga border, a scenario that has left only 10 percent of annual LPG consumed in Kenya coming from Tanzania as traders fear regulatory hurdles.

The increased import from Tanzania is expected to rival the current 90 percent import coming through Mombasa, increasing the supply and consequently lowering prices.

Apart from the construction of a common user facility in Mombasa that will enable the importation through an open tender system, the ministry is also planning a 2,000 metric tonnes LPG distribution and filling depot in Nairobi.

Smaller regional depots in Kisumu, Nakuru, Eldoret and Sagana are also expected to boost distribution and increase access to the clean cooking energy.

The energy regulator has also allowed oil marketers to pack cooking gas in 0.5kg domestic cylinders to improve affordability of cooking gas by lower class consumers.

“Already, EPRA has licensed one company to market the 0.5kg cylinders. Further, EPRA has been working closely with two companies authorized to undertake pilots of smart LPG meters which allow consumers to pay for the LPG they can afford just like it happens in electricity tokens thus reducing the burden associated with refill of a full cylinder,” Mr Oimeke said.

Kenya consumes 22,700 metric tonnes of LPG every month.