Draft law sets hard rules on LPG sale

Small-scale traders of Liquefied Petroleum Gas (LPG) could be pushed out of business as the Government moves to tighten regulations in the sale of cooking gas.

The regulations contained in the draft Energy Act released for public discussion, will require anyone trading in cooking gas to acquire a licence from the Energy Regulatory Commission (ERC), register a business name and get a five-year lease for the premises they intend to operate from.

After paying Sh20,000 for a licence, traders will have to get an assessment report from the National Environment Management Authority, which will be done on an annual basis, and take their employees for training on handling of LPG.

It will also be illegal to transport more than three LPG cylinders in a vehicle at the same time unless you have applied for and received a licence as a gas transporter.

Valid licence

“A person shall not transport more than three filled LPG cylinders to a maximum combined weight of 50 kilogrammes by road, except in accordance with the terms and conditions of a valid licence issued by the Energy Regulatory Commission,” says the proposed law published by Energy Cabinet Secretary Charles Keter.

All gas transporters shall also be required to register as a business at the Registrar of Companies, fit their vehicles with GPS-enabled tracking systems and only hire drivers who have received training in defensive driving in accordance with the National Transport and Safety Authority regulations.

Retailers will have to maintain a record of all cylinders in their possession and those that pass through their hands for up to 365 days.

Such information like the serial number of the cylinders shall be included in receipts that must be given to customers after a purchase.