The price of Liquefied Petroleum Gas (LPG) will soon go up, CEO of the National Petroleum Authority (NPA), Hassan Tampuli, has hinted.
According to him, the Cylinder Re-circulation module which the government intends to implement, will be the cause of the “marginal” increase.
The presidency gave the green light for the module to be implemented following an explosion at an LPG station at Atomic Junction which killed seven people and injured 132 in October.
Speaking before the Mines and Energy Committee of Parliament, Mr Tampuli said: “Currently the policy directive is that we should have at most six stations. If we have any explosion it should be at those places and not anybody, so the fear and apprehension that people will be suffering will be abated to a very large extent. That is what the cylinder re-circulation module is going to achieve.
“It is going to lead to a little increase in the price, but it is just marginal which is going to take care of the margins for the LPG bottling plant because that is the new addition to the supply chain, and we do this for our safety and we believe that all in all, the policy of LPG cylinder re-circulation should succeed.”
However, the LPG Marketers Association and the Association of Gas Tanker Drivers are determined to kick against the implementation of the policy.