Crackdown on Illegal LPG Business Operation

The Ministry of Energy and Petroleum in collaboration with the Ministry of Interior and the Energy and Petroleum Authority (EPRA) has formed a multi-agency team to spearhead the implementation of a Rapid Response Initiative that is inspecting companies illegally dealing in Liquefied Petroleum Gas (LPG). The team is concerned with the safety of consumers and is inspecting the status of companies dealing in LPG and their compliance with the law.

The Petroleum Act lists various offences with the respective fines/penalties

Importation, exportation, or transportation of Liquefied Petroleum Gas (LPG) without a valid license issued by EPRA is liable to a fine of not less than Ksh10 million;

Any business person found guilty of operating a non-licensed LPG facility; or refilling, trading, or rebranding cylinders without the brand owner’s consent is liable to a fine of not less than Ksh10 million;

Any person found guilty of reselling bulk LPG (liquefied petroleum gas of a quantity exceeding 80 kilograms) to another person for the purposes of export or retail or final use without a valid license issued by EPRA will pay a fine not less than Ksh1 million;

Anyone found guilty of using a vehicle for purposes of transporting bulk LPG that does not possess a valid permit issued by EPRA will also attract a fine not less than 1 million;

Failure to display the original or certified copy of the license or permit issued by EPRA at the premises of operation will attract a fine not less than 1 million;

Other offences flagged out include:

Supply of bulk LPG to facilities not licensed under the regulations other than the LPG consumer facilities will attract a fine of Ksh.500, 000 for each delivery to a licensed facility;

Driving, a vehicle or engaging a driver for the purpose of transporting bulk LPG without a valid driver certificate issued by EPRA will attract a fine of not less than Ksh250, 000;

Failure by the LPG licensee to comply with all the laid out obligations set by EPRA will attract a fine of not less than Ksh200, 000 for each offense committed;

Failure to report an LPG-related accident within 48 hours attracts not less than Ksh200, 000 for each offense committed for every accident not reported within the prescribed window;

Any individual found guilty of importing LPG gas cylinders through undesignated routes will be fined at least Ksh200,000;

Activities that attract fines of Ksh.100, 000 include:

Any operator who obstructs an inspection officer from EPRA or its licensing agents will be fined Ksh100, 000 for each day the obstruction occurs;

Non-submission of cylinder import data on a monthly basis will attract a fine of Ksh100, 000 for each month not submitted;

Not submitting the bulk LPG import data on a monthly basis also attracts a fine of Ksh100, 000 for each month not submitted;

Offences that attract fines of Ksh.50, 000 and Ksh.20, 000
Anyone found guilty of failing to keep mandatory records prescribed in the act will be fined Ksh50,000;

Anyone found stocking or offering for sale cylinders will attract a fine of Ksh20,000 for each substandard cylinder;

Unauthorized possession of LPG seals without the brand owner’s authority will attract a fine of Ksh20,000 for each seal found within the premises.

Other offenses include non-declaration of the load port for imported Bulk LPG and the quantity imported, falsified declaration of quantities of imported bulk LPG and non-declaration of the final destination of imported bulk LPG.

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