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State calls on LPG producers to invest in Tanzania

MINISTER for Energy, Dr Medard Kalemani has invited manufacturers of Liquefied Petroleum Gas (LPG), cylinders to set up factories in Tanzania so that prospective customers could get them at a lower price.

Dr Kalemani said many people, especially in rural areas, cannot afford to use LPG because of exorbitant prices, but by having more companies manufacturing the cylinders, it might lower prices.

“We invite manufacturers to come to Tanzania to invest in the production of LPG cylinders, because that is one of the factors that has led to high prices since both are imported,” he noted.

Speaking during the 6th Africa LPG summit in Dar es Salaam yesterday, he said the government encourages industry players to establish joint facilities, in particular storage facilities and filling plants all over the country.

He further said that it was necessary for local communities to transit to clean, affordable and modern energy and saying that LPG should be part of the clean cooking fuel energy mix.

“There is a need to expand the LPG business from urban areas to the villages, as that is where deforestation is highly visible, since people cannot afford an alternative source of energy and fewer producers have reached their areas, “ he noted.

On bulky procurement of LPG, he said the government was reviewing the process in which after three months they will come up with proper answers to the matter.

The event has brought to Tanzania over 50 exhibitors who are LPG industry stakeholders to dialogue on climate change factors for two days.

Under the theme ‘Developing key success factors for a sustainable LPG business in Tanzania and in East Africa’ they will discuss how to best harness opportunities that arise within Tanzanian communities and ensure sustainable socio-economic development for all citizens.

Regional Manager LPG Eastern and Southern Africa for Oryx Energies, Mr Erasto Mulakazi said they were working with Tanzania Bureau Standards (TBS), and Energy and Water Utilities Regulatory Authority (EWURA), in order to agree on the future standard of the quality of gas cylinders.

“Though we have commenced recycling of LPG cylinders, there are things to put into consideration, including its maintenance and provision of education to customers on how to use properly,” he said.

According to a report by EWURA, importation of LPG rose by 13 per cent in 2018, up from the previous years. During the period, marketing companies imported 120,961 tonnes of LPG, up from 107,083 tonnes in 2016/17.

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Author: HILDA MHAGAMA

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