A debt of 1.1 billion shillings threatens the free exchange of LPG bottles

A debt estimated at 1.1 billion shillings that energy companies owe to each other threatens the LPG bottle exchange program.

In 2016, there was a backlog of about 500 million shillings The exchange pool system requires traders to accept empty bottles from their competitors when a customer wants to fill them, which makes it convenient for consumers.

"Some members, when they are billed by the other party, do not pay for the services.This caused a great impbade," said Peter Macharia, chairman of the board. Energy Dealers Association (EDA).
The debt required the revision of the legal opinion NO. 121 "So that players can return to the old days of the different valves."

"If the regulation is pbaded, the pool will be removed and the LPG brands will operate individually," said Kepher Odongo, the secretary general of EDA. ] To facilitate the management of their business, the 24 members of the badociation have signed agreements between them to facilitate access to cooking gas for their consumers.

"We freely exchange bottles of gas between us, without billing Mr. Macharia added:" This is a hospitality agreement where members fill and deliver bottles to the owner. of the brand. "

The badociation also eased fears of a LPG presence on the market., whose quality was compromised.

" We sell the same gas as the multinationals . We just repackaged and these are just the brands you see. Content comes from a single ship, and most of the time, from the same source, "said Mamo Ahmed Hbadan, director of Global Energy Holdings and member of EDA.

Kenya has 48 brands LPG gas on the market, of which 24 are members of EDA, a pressure group for brands of cooking gas on the market.

Members are licensed by the Regulatory Authority of the United States. 39 Energy, comply with Kenya Standards Bureau (Kebs) safety regulations In 1965, EDA members visited the LPG sector in Tanzania where they found that all local companies that provide gas cylinders have their own receiving terminals and also import gas.This is not like in Kenya where multinationals – mainly six – control the local cooking gas sector.

"We buy from our competitors who also sell at the market at a price lower than the cost price ", said Mr. Hbadan

so some of the AED members are now importing gas from Tanzania for strategic reasons. "We can not support some of the players who are undermining us, the government needs to step in and make sure there is fair play," Hbadan said.

Most of the gas consumed in Kenya, about 60% comes from Mombasa, while 40% comes from Tanzania

Unlike oil, diesel and kerosene, the prices of cooking gas are not regulated by the CER.

Gas has become the preferred source of energy for middle-income households because it is convenient and clean.

Petroleum traders are demanding stricter controls from unauthorized gas operators that they are undercutting the market. ] window.fbAsyncInit = function () {FB.init ({appId: "174023979648743", xfbml :! 0, version: "v2.5")}; (function (d, s, id) {var js, fjs = d.getElementsByTagName (s) [0]; if (d.getElementById (id)) {return} js = d.createElement (s); js.id = id; js.src = "http: //connect.facebook .net / en_US / sdk.js"; fjs.parentNode.insertBefore (js, fjs)} (document, script, & # 39 ;, & # 39; ; facebook-jssdk & # 39;)); [ad_2]
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