Cooking gas dealers are taking advantage of increased demand from consumers forced to stay at home by the Covid-19 outbreak to increase the price of cylinder refilling.
Unlike other petroleum products, the price of liquefied petroleum gas (LPG) is not controlled hence open to manipulation with concerns that dealers are now exploiting market forces to their advantage even as international crude prices continue to fall.
Energy and Petroleum Regulatory Authority (EPRA) enforcement teams will be doing surveillance and recommending the revocation of LPG retail licenses for those found to have hiked prices. We know the average price for all cylinders and deviation is noticeable,” Mr. Oimeke said.
Epra earlier warned traders to stop the malpractice and ordered them to issue receipts bearing details of retailers and buyers as well as dates of transactions in compliance with the Petroleum (Liquefied Petroleum Gas) Regulations of 2019.
The LPG regulations prescribe a Sh50,000 fine for selling cooking gas without receipts as a measure to curb illegal trading.
LPG prices are expected to fall in line with the price of crude oil, which is almost at a two-decade low, while demand is expected to rise slightly as more Kenyans stay at home following the Covid-19 outbreak.
