Thursday, May 23, 2024

Epra leaves prices of gas powering cars to forces of demand, supply

Kenya has no rapid plans of controlling costs of liquefied petroleum fuel used to energy automobiles and can as an alternative monitor uptake earlier than making a choice on capping.

The Vitality and Petroleum Regulatory Authority (Epra) says that the uptake of autogas remains to be at its nascent phases and introduction of value caps might damage its consumption.

Kenya has an estimated 20,000 automobiles working on autogas, making it probably the most extensively used clear vitality within the transport sector forward of electrical energy.

Epra presently controls costs of Tremendous petrol, diesel and kerosene with caps meant to guard customers given the mass utilization of the fuels in driving the financial system.

“Financial regulation of the sector by value setting has not begun for the reason that trade is at its nascent phases,” Epra mentioned in a response to this publication.

“There are about 20,000 automobiles working on autogas. To date, about 9 stations have been accepted and are operational,” Epra mentioned.

The rise within the variety of automobiles being transformed to make use of autogas has been attributed to decrease prices of the commodity at a time when costs of diesel and Tremendous petrol have remained excessive.

An autogas tank can maintain between 20 to 25 litres of gas and a litre can energy a automobile for 12 kilometres.

A litre of autogas is averaging Sh97 in Nairobi the place a majority of the autogas-powered automobiles are presently in use.

A litre of Tremendous petrol is retailing at Sh193.84 whereas that of diesel is at Sh180.38.

The bottom price for a unit of energy is Sh16 below the electrical mobility tariff that was launched in April final yr.

Autogas and electrical engines are the 2 clear modes of transport and whose reputation has been on a spike within the race to curb carbon emissions from the sector. There are 3,753 electrical automobiles within the nation.

The usage of autogas on automobiles was piloted in Kenya six years in the past and its reputation, like that of electrical automobiles, is projected to stay on a gradual climb within the wake of pricey petrol and diesel.

Kenya, like the remainder of the world, is within the electrical mobility race and targets to have 5 % of all new automobiles registered to be electricity-powered, as a part of the worldwide efforts to chop carbon emissions and stem opposed climatic change.

The nation has set an formidable goal of getting 5 % of all new automobile registrations by the top of subsequent yr, be powered by clear gas (autogas or electrical energy).

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