Business News

New cooking gas rule takes effect

Consumers can exchange cylinders with the available brands. Photo/FILE

Consumers can exchange cylinders with the available brands. Photo/FILE 

By KENNEDY SENELWA
Posted  Monday, November 30  2009 at  14:53

Consumers of cooking gas now have the freedom of filling their gas cylinders at any retail outlet of their choice after verifying the product’s weight.

This follows the coming into effect today of government regulations allowing users to buy cooking gas in cylinders fitted with standardised valves without being tied to a specific company brand.

Under the rules, retail outlets are required to maintain properly calibrated weighing instruments to allow buyers to verify the net content of the liquefied petroleum gas (LPG) cylinders.

“This will enable consumers to exchange their empty cylinders with full cylinders from any retail site nearest to them,” said Energy Regulatory Commission (ERC) director general Kaburu Mwirichia.

In an advert on Monday, the industry regulator said the rules published by Energy minister Kiraitu Murungi on July 24 this year, require all cylinders (vessels) in Kenya to have 20 millimetres standard valves.

“All businesses involved in the filling and wholesale of gas are required to be members of the LPG Cylinder Exchange Pool,” said Mr Mwirichia.

All players in gas business must adhere to Energy (Liquefied Petroleum Gas) Regulations of 2009 and obtain licences from ERC which will carry out periodic field inspections.

The regulations empower the commission to oversee the importation, storage, wholesale, transportation, cylinder filling and retailing of LPG.

“A person who contravenes any of the provisions commits an offence and, shall on conviction, be liable to a fine not exceeding Sh1 million or imprisonment for a term not exceeding one year, or to both,” said the minister.

The regulations aim at enhancing public safety through safe vessel filling, increase gas accessibility to consumers, encourage competition and curb unfair business practices.

Mr Mwirichia said the process of interchanging vessels starts on Tuesday among LPG Cylinder Exchange Pool members to facilitate collection of empty cylinders for forwarding to brand owners facilities.

Barring companies

He said regulations barring companies from selling cooking gas to unlicensed operators for resale aim to discourage mushrooming of illegal LPG cylinder filling sites.

Mr Mwirichia said unscrupulous business people filling cylinders illegally deny consumers value for money by providing those with less weight and compromising safety as vessels do not go for maintenance and routine checks for dents.

Petroleum Institute of East Africa said the LPG Cylinder Exchange Pool secretariat is already operational to facilitate exchange of gas vessels of three kilogrammes, 6 and 13 among licensed firms.

“To promote availability, cylinders are fitted with standardised valves so that consumers can buy gas from any retail outlet without sticking to a specific brand,” said PIEA’s general manager Wanjiku Manyara.

She said that is illegal to fill another marketer’s cylinder.

The management committee of cylinder pool is composed of representatives from Total, Oillybia, BOC KenolKobil, Kenya Shell, Ministry of Energy and Kenya Bureau of Standards.

Ms Manyara said pool members are required to adhere to code of conduct, have trained workers, a minimum of 5,000 cylinders, take public liability and execute a security bond of Sh5 million.

Imported gas under July 2009 rules must conform to requirements set by Kenya Bureau of Standards and any accident related to transporting of LPG must be reported in writing to ERC in 48 hours.