MPs reject plan to regulate cooking gas imports via open tender system

MPs reject plan to regulate cooking gas imports via open tender system

EPRA Director General Daniel Kiptoo had said early last month that the regulations would form the legal basis for shifting to the OTS model for LPG importation.

Members of Parliament have rejected a government’s proposal that would have introduced an open tender system for importing cooking gas, a move that sought to lower consumer prices and bring the commodity under State regulation similar to petrol, diesel and kerosene.

The National Assembly Committee on Delegated Legislation said the Petroleum (Operation of Common Petroleum Facilities) Regulations, 2025, were tabled in Parliament outside the stipulated timeline and lacked public participation, making it impossible to approve the rules.

“The committee recommends that the House annuls in entirety the following regulations for the following reasons; the legal notices were published on May 10, 2025 and transmitted to the Clerk of the National Assembly on July 11, 2025 being outside the seven sitting days timeline contemplated under Section 11(1) of the Statutory Instruments Act,” the committee said in its report.

“Failure to demonstrate public participation in compliance with Article 10, Article 118 of the Constitution and Section 5 of the Statutory Instruments Act.”

The regulations were intended to designate private cooking gas handling terminals as common-user facilities, allowing the Energy and Petroleum Regulatory Authority (EPRA) to set tariffs for handling and storage of LPG, as well as retail and wholesale prices. The OTS model would have awarded import tenders to bidders quoting the lowest price, ensuring access to the cheapest quality fuel.

Currently, cooking gas is imported privately using two terminals, a system that prevents the State from regulating retail prices as it does for petrol, diesel and kerosene. The new regulations were part of the 10 rules that the committee has recommended for revocation.

EPRA Director General Daniel Kiptoo had said early last month that the regulations would form the legal basis for shifting to the OTS model for LPG importation.

The rejection follows frustrations over cooking gas dealers failing to lower prices in line with government tax breaks, prompting the push for the OTS. Other regulations the committee struck down would have allowed cooking gas to be sold in tokens, making it more affordable for low-income households.

Parliament is expected to debate the committee’s report and decide whether to formally annul the ten regulations.

Historically, Members of Parliament have generally endorsed recommendations made by House committees, suggesting the annulment is likely to be upheld.

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