In every 10 gas cylinders, 7 are illegally refilled: Oil marketers

Total Kenya employees at the LPG storage tanks depot in Nairobi’s Industrial Area depot. FILE PHOTO |   NATION MEDIA GROUP

In Summary

• He added that the industry is plagued by untaxed LPG imports through Tanzania to Kenya, with players taking advantage of the poor liquid petroleum tax structure in the country.
• Total Kenya Managing Director Ada Eze said new regulations drafted by government on LPG should be passed to increase the appeal of LPG products to investors.
• Energy and Petroleum Principal Secretary Joseph Njoroge said he is pushing the Treasury to remove taxes on LPG cylinders and accessories to boost access to LPG by the wider population.

By LILIAN OCHIENG
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Seven out of every 10 gas cylinders sold in Kenya are illegally re-filled, edging out mainstream oil marketers.

Petroleum Institute of East Africa chairman Polycarp Igathe, who is also the managing director of Vivo Energy, said the situation is worsened by illegal gas vendors refilling their cylinders over seven times annually. 

“Gas cylinders should be refilled only six times a year as a standardised requirement for safety of the user. In Kenya, illegal refillers do it more than seven times a year, this is a health risk and is pushing us out of business,” said Mr Igathe at the second Africa Liquid Petroleum Gas Summit forum in Nairobi on Tuesday.

The lobby group warned that if the trend went unchecked, it could go as far as compromising the safety of users, who risk burns or death from the un-standardised petroleum gas.

TAX STRUCTURE

He added that the industry is plagued by untaxed LPG imports through Tanzania to Kenya, with players taking advantage of the poor liquid petroleum tax structure in the country.

Total Kenya Managing Director Ada Eze said new regulations drafted by the government on LPG should be passed to increase the appeal of LPG products to investors.

“Kenya needs affordable and reliable energy to power the economy, (and the) government has to find a way of working with the private sector on its tax policy, regulation of the sector and enforcement,” said Ms Eze.

Energy and Petroleum Principal Secretary Joseph Njoroge said he is pushing the Treasury to remove taxes on LPG cylinders and accessories to boost access to LPG by the wider population.

“The final report on the petroleum master plan has been shared with stakeholders for discussion, it extensively addressed LPG infrastructure requirements, potential and opportunities,” said Mr Njoroge.

Stakeholders at the forum also called on the government to provide large import storage facilities in Mombasa using the open tender system that guarantees lower fuel costs to ensure LPG costs remain low.