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Energy regulator seizes 26,000 gas cylinders on illegal trade crackdown

The illegal gas trade has been costing the licensed brand owner close to Sh1.2 billion yearly. (Handout)

By Alfred Onyango | Thursday, July 4, 2024

The illegal gas trade has been costing the licensed brand owner close to Sh1.2 billion yearly, stemming from the inability to benefit from their investments in manufacturing cylinders, and marketing their brands through advertisements.

The Energy and Petroleum Regulatory Authority (EPRA) has recovered 26,000 LPG cylinders through its nationwide clampdown on illegal LPG refilling plants, a move aimed at preventing artificial losses by compliant dealers.

The illegal gas trade has been costing the licensed brand owner close to Sh1.2 billion yearly, stemming from the inability to benefit from their investments in manufacturing cylinders, and marketing their brands through advertisements.

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Further, the regulator says the brand owners have experienced loss of business as LPG cylinders released to the market are hardly returned for refilling.

The operation was conducted between June 2023 and June 2024 by the regulator's multi-agency team in Nairobi, Mombasa, Nakuru and Eldoret.

As a result, 32 LPG refill facilities were shut with some having their LPG license suspended.

Commenting on the operation, EPRA director General Daniel Kiptoo said the impounded cylinders will be returned to brand owners to help increase the quantity of genuinely refilled LPG cylinders in the market.

"The first batch of 6,000 LPG cylinders has been returned to brand owners," Kiptoo said.

The decision comes days after a multi-agency team comprising EPRA staff, and other government regulatory and enforcement agencies raided a home at Utidhini Area in Machakos County, where an illegal refilling plant was closed down.

The multi-agency team impounded an LPG tanker, LPG refill equipment and an unassorted number of empty LPG cylinders lined up for refilling.

The raid also seized a mini-lorry loaded with refilled LPG cylinders ready for distribution to the market.

According to the energy (liquefied petroleum gas) regulations, 2009, it is prohibited to refill, rebrand, deface, or submit LPG cylinders belonging to another brand for maintenance and every LPG refill business must possess their own registered brand of at least 5,000 LPG cylinders or possess a written agreement allowing them to conduct refill business using the branded LPG cylinders from registered brand owners.

The clampdown on illegal gas trade comes at a time when the country is experiencing increased consumption of LPG as the state pushes for a cut down on fossil fuel usage.

EPRA's latest biannual statistics report shows tax waivers the government imposed on LPG, pushed up LPG consumption in the county by eight per cent to stand at 360,594 metric tons.

Nevertheless, the use of LPG is set for triple-fold growth as the government implements the LPG Reticulation Project, which aims to install LPG reticulation kits in 5,000 public schools by the end of the year.