Tougher times ahead - LPG edishen

zapp_brannigan

I am not a Futurama fan .
Some years back the fuel stations would exchange gas cylinders free in their pooling system . This came to an end and the consumer was back to a locked system where lazima you must refill with the same brand and now service stations sell at the prices they want since customer hana option .
Its now getting worse , in less than 10 months the cost of 13 kg refill imehike from 2300 (around March 2021) which later changed to 2600 ( August 2021) and right now it's retailing at Ksh 3000 .

Kenya: Why Kenyans Are Paying Dearly for Cooking Gas


12 OCTOBER 2021
By Brian Ambani
So deep-pocketed and well-connected is the monopoly that controls imports of liquefied petroleum gas (LPG) that no new player seeking to enter the industry gets past endless government bureaucracy, Petroleum and Mining Principal Secretary Andrew Kamau told lawmakers last month.
The sabotage by government regulatory agencies in granting the necessary approvals for setting up large-scale LPG storage facilities is so significant, he said, that he knows only one firm that has recently received an environmental impact clean bill of health from the watchdog Nema.
Mr Kamau appeared before the National Assembly's Finance and Planning Committee to explain the sharp increase in fuel prices in the last review.


"I know of six foreign companies that have for long wanted to come to invest in the country in LPG and build storage facilities but they cannot even get past Nema," he told lawmakers.
"The only company that has so far managed to get approval from Nema is Oilibya (now Ola Energy) but it's still yet to get approval from other regulatory agencies."
A day before, the energy regulator had revealed to MPs that the bulk of the cooking gas used in Kenya comes via Tanzania through the ports of Dar es Salaam and Mombasa.
Energy and Petroleum Regulatory Authority (Epra) Director-General Daniel Kiptoo said that much of the gas consumed in Kenya is supplied by one investor, adding that the landed cost of LPG in Dar is $830 (Sh913,000) per tonne and $960 (Sh105,600) in Mombasa.
 
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shocks

Elder Lister
So deep-pocketed and well-connected is the monopoly that controls imports of liquefied petroleum gas (LPG) that no new player seeking to enter the industry gets past endless government bureaucracy, Petroleum and Mining Principal Secretary Andrew Kamau told lawmakers last month.
The sabotage by government regulatory agencies in granting the necessary approvals for setting up large-scale LPG storage facilities is so significant, he said, that he knows only one firm that has recently received an environmental impact clean bill of health from the watchdog Nema.
Ukisoma hizi story you may think heads wa hizo regulatory authorities don't report to the president
 

mzeiya

Elder Lister
Hii Jaffer ni ile ya Grain Bulk Handlers ?
Sijui. Trying to get myself educated on the LPG sector in Kenya sababu kile mimi hujua ni ati Rao has a huge stake in the industry
 

zapp_brannigan

I am not a Futurama fan .
Sijui. Trying to get myself educated on the LPG sector in Kenya sababu kile mimi hujua ni ati Rao has a huge stake in the industry
He is the same fellow ,just used your article details
 

Okiya

Elder Lister
Sijui. Trying to get myself educated on the LPG sector in Kenya sababu kile mimi hujua ni ati Rao has a huge stake in the industry
RAO's company only manufactures the cylinder. Has there been an increase in the cost of cylinder or its the gas in the cylinder?
 
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