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Gas Cylinders: Petroleum Firms Cry Foul Over Home Gas Cylinder 'Poaching'

By Richard Mungai

STANDARD valves on cooking gas cylinders could be phased out if the petroleum industry convinces the Energy Regulatory Commission that their continued use is counter- productive.

The Petroleum Institute of East Africa said the valve, introduced into the market in 2006 to ease the refilling of gas cylinders has enabled cartels to rake in massive profits through illegal refills. "The institute is alarmed by the increasing cases of LPG malpractice.

We would like to revert to the unique valve types so that the licensed dealers can be able contain illegal distribution of their gas cylinders by cartels," PIEA managing director Wanjiku Manyara said yesterday at a press briefing in Nairobi. According to Manyara, the cartels mostly fake the six kilogram cylinder due to its popularity in the market.

The institute's chairman, Polycarp Igathe said the ERC has been reluctant in arresting the illegal dealers adding that poor storage and unmonitored refilling of LPG has exposed consumers to danger since the cylinders can easily explode.

He said 70 per cent of the LPG business in the country is being handled by the cartels adding that Nairobi alone has more than 70 illegal retailers and over 10 illegal LPG storage and refilling facilities.

"This statistics mean that seven out of 10 LPG cylinders in the market are supplied by illegal refillers. PIEA can no longer take responsibility for gas cylinder accidents as majority of product that is stocked in supermarkets and estate retail outlets has not been filled or sup- plied by the original brand owners," he said.

He said the illegal dealers have a competitive edge in the market since they avoid paying taxes and fill less content than specified for the six and 13 kilogram gas cylinders. "These cartels are also making a lot of money since they don't invest in gas cylinders to be used in the gas exchange pool.

We are advising consumers to buy cooking gas from service stations and ensure they get a receipt," he said. Igathe said they have details of the LPG cartels adding that the government should arrest them to enhance consumer safety. "Illegal LPG handling has led to an increased fire accidents in homes across Kenya," he said.

Read more: http://allafrica.com/stories/201408061587.html#ixzz39i5jj8iV

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Gwokto La'Kitgum

"Even a small dog can piss on a tall Building", Jim Hightower

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