Ewura ponders regulating gas prices

Dar es Salaam. The Energy and Water Utilities Regulatory Authority (Ewura) is evaluating the quantity of Liquefied Petroleum Gas (LPG) that is being imported into the country with a view to stating regulating its prices.

This comes at a time when prices of the product have increased from Sh18,000 to Sh22,000 for 6kg cylinder and from Sh45,000 to Sh52,000 for 15kg cylinder. The Ewura principal communications officer, Mr Titus Kaguo told The Citizen on Monday that the regulatory body will only regulating prices for the product when its importation starts to be governed under the Bulk Petroleum Procurement System (BPS).

The BPS is the one that is currently used in the importation of diesel, petrol, kerosene and Jet-A1. “Whilst there are ongoing arrangements for Ewura to start regulating LPG prices, it is somewhat difficult to start doing so immediately due to the fact that its demand is relatively low and as such, Local Marketing Companies (LMCs) are importing it on individual basis, making it difficult to track,” he said.

Due to a low demand, Ewura is being somewhat flexible as it wants to grow the market first before applying too much regulatory measures.

He however said that Ewura has been engaged in regulating LPG business segment in terms of technical and Health Safety and Environment (HSE) related issues. It also monitors LPG world prices especially those imported as Free On Board (FOBs) to ensure that LMCs do not exaggerate these costs in their LPG pricing structures.

He said after it came to the attention that LMCs planned to increase prices, they asked them to confirm and submit their pricing structures for the intended increases.