The Energy and Petroleum Regulatory Authority (EPRA) has identified and punished crooks in the oil and gas industry putting lives of many Kenyans at risk and creating unhealthy competition.
During the period between 28 March to 27 June this year, ten facilities were found undertaking liquified petroleum gas malpractices while between April to June from a total of 7,270 tests conducted at 1, 529 petroleum sites discovered eighteen of the sites non-compliant, either selling adulterated or export bound motor fuels in the local market.
The Authority said it closed six diesel dispensing pumps and reopened one after paying taxes and penalties amounting to Sh121,414, four Super Petrol dispensing pumps were closed within the same period and three reopened after upgrading of product and paying taxes and penalties.
The test resulted in closure of two Kerosene dispensing pumps and reopening of one. The stations under focus include Wilbur (Kajiado), Kaptama (Bungoma), Station one (Trans Nzoia), Obola (Kisumu), Ilama Enterprises (Muranga), Ndori Roadside (Siaya), Chaka (Nyeri), Hokkaido (Machakos), Alysent (Taita Taveta), Penta-Lever Energy (Vihiga), Evolving (Vihiga), Goodwill Oils (Baringo), Ola (Meru), Bellas (Siaya), Lukolis (Busia) and Maxoil (Siaya).
PETROLEUM ACT 2019
The Petroleum Act 2019 and the Petroleum (Liquefied Petroleum Gas) Regulations 2019 requires persons to undertake the business of liquefied petroleum gas in accordance with the terms and conditions of valid licenses issued by the Energy and Petroleum Regulatory Authority.
In this regard, the Authority undertakes random surveillance and enforcements on liquefied petroleum gas business in a bid to enhance compliance, security, safety and promote consumer protection.
Some of the requirements under the petroleum act 2019 requires for instance a person who wishes to export liquified petroleum gas in cylinders to obtain prior written consent from the brand owner and such consent to be submitted to EPRA for approval.
The obligation of the brand owner is to ensure that its cylinders are in a good state of repair and are re-qualified in accordance with Kenya standards and maintain serial number or quick response codes and date of requalification of each cylinder.
The act states that a person shall not undertake the business of retail of liquefied petroleum gas cylinders of another brand owner without prior written consent from the brand owner and such consent submitted to the respective County Government and the Authority.
“An importer shall also not supply bulk liquefied petroleum gas to any person unless such a person is in possession of a valid bulk liquefied petroleum gas licence issued under the Act or such a person is a liquefied petroleum gas consumer.
It gives an importer the authority to terminate the supply of liquefied petroleum gas to a liquefied petroleum gas consumer where it is established that a liquefied petroleum gas consumer is undertaking refilling or further trade in liquefied petroleum gas without the requisite licence required under the Act.
LPG MALPRACTICES
However, during the 28 March- 27 June period, the regulator discovered several malpractices in the LPG sector some with far reaching effects to the lives of consumers.
Depar Limited operating Wajiko, Gasky and Tri-Gas cylinder brand in Nairobi off North Airport Road in Embakasi was found to be refiling LPG cylinders of other brands without authority from the brand owners. The offense is contrary to section 90(1) (m) of Petroleum Act 2019 and section 13 (1) and 14 (a) of Petroleum LPG Regulations.
The Authority suspended the facility for a one-month period as the case is still under investigation.
During similar period, Geogas along Nairobi’s enterprise road and operating County Gas Cylinder brand was found to be in breach of the act by discharging LPG from unlicensed bulk LPG transport vehicle contrary to regulations. The case is still under investigations.
Afko Gas operating County Gas and Amaan Gas cylinder brands in Nairobi along Lunga Lunga road has its case under investigations for prosecution after using a motor vehicle for the purpose of transporting LPG in bulk without a valid permit in respect of the vehicle issued by the authority.
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