The government is conducting studies aimed at streamlining and standardizing prices in the Liquefied Petroleum Gas (LPG) sector in efforts to improve safety and standards.
Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo said they undertook a market study in July 2024 which was conducted by Kurrent Technologies Ltd and Channoil Consulting Ltd with the aim of updating the underlying assumptions, analyses and parameters that define the pricing value chain and recommend a price determination mechanism for regulated petroleum products.
Speaking in Nairobi on Tuesday during a stakeholder’s validation workshop on the 2nd Cost of Service Study for Petroleum Products in Kenya, Mr Kiptoo said that the report was necessary so as to introduce several key parameters, changes and recommendations to align their pricing strategies with the current market conditions.
‘The forum is aimed at determining key elements in the Liquefied Petroleum Gas Value chain that is currently not price regula
ted and validating the cost of service for petroleum products so as to ensure that the prices are fair and transparent.
He explained that the forum mainly targeted views on the draft report from stakeholders in the petroleum industry, consumers, and consumer groups among other people which will be incorporated in the final report.
‘The stakeholders have been of help as the company has received great feedback and insights from all marketing companies, industries, businesses and membership organizations who had been actively participating in the betterment of their dynamic energy market,’ said Kiptoo.
He continued: ‘However, our energy landscape continues to evolve, and it has become imperative that we revisit and update the mechanisms used to term prices for regulated products.’
EPRA Economic Regulation and Strategy (ERS) Director John Mutua said that: ‘When it comes to the cost of supply, we have to look at the past to inform the present which is very important.’
Dr Mutua said that over the past five yea
rs they have been conducting studies in the electricity and petroleum sectors in efforts to get key information necessary before making various decisions.
He added that they have to look at the supply chain and ensure that they effectively and objectively provide prices that are reflective of the cost of supply while taking into consideration the consumers.
Source: Kenya News Agency