In a move aimed at reducing consumer prices for Liquefied Petroleum Gas (LPG), the Energy and Petroleum Regulation Authority (EPRA) says plans are underway to implement the Open Tender System in the importation of LPG.
With the OTS system, petroleum and its products are sourced from the open market, without necessarily having any prior information or contacts. Because of this, oil marketing companies can get the products at an equal initial price, which translates to healthy price competition in the market.
LPG is currently the only oil product that is not imported through the open tender system.
The new measures by EPRA will also see the construction of an LPG testing unit at the Kenya Bureau of Standards (KEBS) to enhance its importation from Tanzania.
Imports from Tanzania have in the recent past been accompanied by feuds, with a ban being imposed on the imports on 24th April 2017. The ban occurred because it was discovered that most LPG consumers in Kenya were purchasing half-filled cylinders from dishonest traders.
However, Tanzania felt the ban was a move by influential business people in Kenya who wanted to monopolize the business.
The ban was however lifted, but there have been concerns on whether the imported gas is safe for consumers. With the testing facility in place, the consumer confidence will be increased as well as the supply.
Kenya’s LPG imports mainly come from Bahrain, with per annum consumption standing at approximately 170 kilotonnes.
