Epra dismisses cartel claims in LPG sector following new rules
The Energy and Petroleum Regulatory Authority (Epra) has dismissed fears new gas rules could bring cartels into the gas value chain, with its boss saying the regulations will spur competition.
“Consumers will still have more than 70 brands to choose from. We expect more entrants into the business since the rules are clear and cases of illegal refilling will have reduced drastically,” said Epra director general Pavel Oimeke.
“Any formation of Mutual Cylinder Exchange pool must be approved by the Competition Authority of Kenya to curtail cartel tendencies,” he said.
Following introduction of the new rules there has been a spike in the cost of gas throughout the country.
A spot check by Business Hub revealed that illegal traders are still selling LPG despite an earlier warning by Epra.
In a circular Epra said that distributors and retailers selling the product without proper receipts will, effective January, attract a fine not exceeding Sh50,000.