In 2017, EDA members toured Tanzania’s LPG sector where they found that all local companies who supply gas cylinders, have got own receiving terminals and also import gas. This is unlike in Kenya where multinationals — mainly six — control the local cooking gas sector.
“We buy from our competitors who also sell to the market at less than the cost price,” said Mr Hassan.
As a result, some EDA members are now importing gas from Tanzania, for strategic reasons.
“We cannot support some players who are undercutting us. The government must come in and ensure that there is fair play,” said Mr Hassan.
Most of the gas consumed in Kenya, about 60 per cent comes from Mombasa, while 40 per cent originates from Tanzania.
Unlike petrol, diesel and kerosene, cooking gas prices are not regulated by the ERC.
Gas has become the preferred energy source for middle-income households since it’s convenient and clean.
Oil marketers have been pushing for more rigorous checks on unlicensed gas operators whom they accuse of undercutting the market through irregular refilling.