There is an ongoing tussle between the country’s energy regulator, Energy Regulatory Commission (ERC) and large LNG (Liquefied Petroleum Gas) dealers in the country.
The large oil/LNG marketers who are mostly multinationals claim that the authority is being lenient in punishing the illegal dealers in the country. According to the dealers through their lobby, Petroleum Institute of East Africa (PIEA), there is a lot of illegal gas dealings in the country amounting to 80 per cent of the total gas dealers in the country. The authority has however dismissed these statistics terming them exaggerated.
In an interview with a local daily, The Standard, Director of petroleum at ERC Linus Gitonga said “Increasing competition in the LPG industry has seen licensed players grow from six in 2009 to the current 23 thus sending shivers among the oil stakeholders.”
“Multinationals could be feeling the heat. The market is too competitive and that is one of the reasons why they are up in arms,” remarks Gitonga.