Cooking gas dealers protest new restrictive trading rules

Cooking gas cylinders at Heshima trading center in Nakuru town. [Kipsang Joseph/Standard]

Players in the cooking gas market have petitioned the State, seeking to be allowed to refill cylinders of competitors outside the association's pool.

This, they argue, will broaden their market. They also want to be exempted from restrictive trading practices in the Liquefied Petroleum sub-sector (LPG)

The members, through their lobby the Energy Dealers Association (EDA), also want to be exempted from compelling members to the only refill, sell and resell cylinders belonging to only the members of the association.

"We are trying to reach out to all regions of the country to fill the demand gaps left by multinationals such as Total in remote areas," said EDA Secretary General Kepher Odongo.

They want to be exempted for 10 years. This will mean that a consumer who buys, for instance Alfa gas in Nairobi, once transferred, say to Kitale, will be able to buy and exchange it with Jamia gas.

"Additionally, we are trying to rid consumers of the perception that gas from different brand owners differ. All brand owners are all subject to the same standards worldwide, EDA being a member of the LPG Association, as well as locally," added Mr Odongo.

The EDA also seeks to be allowed to compel its members to share information relating to the terms of trade. “It is not guaranteed that the exemptions applied will be approved. All, some or none of the exemptions may be granted," said Mugambi Mutegi from Competition Authority of Kenya (CAK).

The exemption application follows the disbandment of all previous existing pools with LPG Regulations (2019) expected to be in force after March 31, 2020.

The regulations compel brand owners of LPG cylinders who wish to operate under a mutual cylinder exchange system to get CAK nod.