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HomeEconomyGovt allows exchange of LPG cylinders for 5yrs

Govt allows exchange of LPG cylinders for 5yrs

Kenyans to pay more for cooking gas starting July

The Competition Authority of Kenya (CAK) has allowed suppliers and distributors of cooking gas to mutually exchange their cylinders for a period of five years.

In gazette notice last week Friday, CAK allowed small-scale suppliers and distributors of cooking gas brands across the country to have their members increase their cylinder count by at least 10,000 per year per depot.

“On the agreement on terms of trade to increase their LPG cylinder population by at least 10,000 LPG cylinders per year per depot and to pay a monthly contribution towards the Wajiko brand for a period of five years,” said CAK in a statement.

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

The revised energy 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 energy dealers association comprising 32 small-scale suppliers and distributors had in February last year requested to be exempted from the rules for 10 years.

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The dealers are expected to provide an annual report to the Authority indicating the levels of growth of the cylinder population of members against the minimum 10,000 annual target set.

The Authority also instructed Members of the association to 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.’’

Consequently, the energy dealers association were directed to indicate total membership highlighting new entrants and those which have exited the association as well as  the members’ compliance level with the safety requirements while submitting their annual report.

However, sharing of all other forms of commercially sensitive information including pricing, margins, volumes, input costs and capacity in the market will be prohibited.

Sharing of 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 also remain prohibited.

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