The government is conducting studies aimed at streamlining and standardising prices in the Liquefied Petroleum Gas sector.
This is 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 and Channoil Consulting.
The study aims to update the underlying assumptions, analysis and parameters that define the pricing value chain.
It is to recommend a price determination mechanism for regulated petroleum products.
EPRA boss said the report was necessary to introduce several key parameters, changes and recommendations to align their pricing strategies with the current market conditions.
Kiptoo spoke on Tuesday during a stakeholder’s validation workshop on the 2nd Cost of Service Study for Petroleum Products in Nairobi.
“The forum is aimed at determining key elements in the LPG value chain that are currently not price regulated and validating the cost of service for petroleum products.
"This is to ensure that the prices are fair and transparent," Kiptoo said.
He said the forum mainly targeted views on the draft report from stakeholders, consumers, and consumer groups 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 organisations who had been actively participating to better their dynamic energy market,” Kiptoo said.
He added:
“Our energy landscape continues to evolve, it has become imperative that we revisit and update the mechanisms used to term prices for regulated products,” Kiptoo said.
“When it comes to the cost of supply, we have to look at the past to inform the present which is very important,” Mutua said.
John Mutua is EPRA's Economic Regulation and Strategy director.
Mutua said over the past five years they have been conducting studies in the electricity and petroleum sectors.
This is to get key information before making decisions.
He said they have to look at the supply chain and ensure they effectively and objectively provide prices that are reflective of the cost of supply.
This is done while taking into consideration the consumers.
