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How Kenya is tackling issues in its oil and gas industry
Kenyan government recently gave cooking gas retailers six months to comply with the new Liquefied Petroleum Gas (LPG) regulations. This aims to tackle escalation of malpractices in the Liquefied Petroleum Gas business and promote use of modern sources energy. Wanjiku Manyara, CEO of Petroleum Institute of East Africa joins CNBC Africa for more.
Mon, 30 Sep 2019 10:48:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The LPG regulations cover the entire value chain of the industry, emphasizing compliance from importers to retailers and brand owners.
- The transition period of six months allows stakeholders to align with the new regulations and obtain authorization to sell LPG cylinders.
- Taxes on kerosene aim to discourage adulteration, promote clean energy adoption, and attract investments in the oil and gas sector.
Kenya's oil and gas industry has witnessed a significant transformation with the recent implementation of new Liquefied Petroleum Gas (LPG) regulations. These regulations, which came into force on June 25th, aim to curb malpractices in the LPG business and promote the use of modern sources of energy. Wanjiku Manyara, CEO of the Petroleum Institute of East Africa, shed light on the key aspects of the regulations in a recent interview with CNBC Africa. The new regulations cover the entire value chain of the LPG industry, from importers and transporters to distributors, retailers, and brand owners. The transition period of six months is crucial for stakeholders to align with the new rules and ensure compliance. Retailers are required to obtain authorization from brand owners to continue selling LPG cylinders. The regulations also mandate brand owners to take full responsibility for the safety and integrity of the cylinders, including insurance, serial numbers, and safety features. Additionally, cylinders must be revalidated every eight years to maintain consumer safety. The stringent enforcement of these regulations is expected to enhance consumer confidence, attract investments, and drive the transition to cleaner cooking fuels like LPG. The government's push towards making LPG the primary cooking fuel aligns with its goal of reducing kerosene usage and promoting environmentally friendly energy sources. The imposition of taxes on kerosene aims to discourage adulteration and incentivize the adoption of cleaner fuels. By eliminating tax evasion loopholes and ensuring regulatory compliance, the oil and gas sector is poised for positive growth and sustainable development. The regulatory authority plays a critical role in enforcing and monitoring the implementation of these regulations to maintain investor confidence and foster a thriving LPG market.
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