Cooking gas dealer Premier Gas has launched Pima Gas, a new cooking gas dispenser product that would allow consumers to refill for as low as Sh50, or around Sh300 per one kilogram cylinders.
This initiative comes after the market saw cooking gas prices skyrocketing, associated with inconsistent supply primarily caused by poor storage infrastructures.
Michael Momanyi, General Manager of Premier Gas, said the new product would make it easier for retailers to refill cooking gas, and the company is targeting to attract kerosene and biomass users to start using LPG.
the International Finance Corporation (IFC), a member of World Bank Group that promotes sustainable investment in developing countries, has pumped in $2 million worth of investment to acquire a 20-percent stake in Premier Gas.
According to data released by the Kenya National Bureau of Statistics, the country consumed 61,400 tones of LPG in 2011, which translates to around 1.59 kilograms per capita consumption. This is well below the average consumption rate of three kilograms per person in Africa.
The data also showed that the retail price of one kilogram empty cylinder would range around Sh2, 000. However, gas shortage in the country saw the refilling price of a 13-kilogran cylinder climb to a record Sh5,000 in the November-December period last year, up from Sh2,500 during the first half of 2011.
Meanwhile, the International Finance Corporation (IFC), a member of World Bank Group that promotes sustainable investment in developing countries, has pumped in $2 million worth of investment to acquire a 20-percent stake in Premier Gas.
Aida Kimemia, IFC’s Principal Investment Officer, said the organization’s active participation in clean energy schemes by supporting products like Pima Gas will facilitate the reduction of greenhouse emissions and health risks.
IFC noted that LPG’s low consumption rate could foretell a huge market demand, particularly for the average retailers who cannot pay for a full refill.
The Pima Gas LPG unit has a total storage capacity of 25 kilograms and costs around Sh300
The Pima Gas units are currently available in Pipeline and Embakasi estates in Nairobi. The company said it will move fast to ensure the units are availed to other estates in the city then the rest of the country afterwards.
While energy remains a challenge in Kenya, like the rest of Africa, the problem has consistently presented a distinct opportunity that lies untapped considering the millions of the population that depend on unhealthy and risky sources of fuel such as kerosene, charcoal and firewood. Over 65 per cent of Kenya’s urban population uses either kerosene or charcoal-exposing them to all sorts of health complications.
For a long time, affordability has remained the greatest barrier to clean energy for the larger population. Now business models like Pima Gas will no doubt break this barrier and deliver profits for investors. But most importantly, the millions of Kenyans that ‘smoke’ their health daily in their kitchens will eventually afford clean energy and enjoy sustainable relief.
Following a number of enquiries received by Bizrika from business people/investors who are interested in putting up businesses to distribute Pima Gas, Bizrika was able to contact the company for the specific requirements. In response, Premier Gas outlined the following requirements for all those who may be interested in this business venture as Pima Gas Vendors:
“To commence the process you require to have a business premises. We will then visit your premises to ensure that it meets the minimum safety standards. As you are well aware LPG is a highly flammable substance and thus safety is critical for us.
• Have a registered business, preferably a retail business.
• Have a Certificate of incorporation, Pin Certificate and Business permit from the City Council
• Have secure, safe and spacious premises
• Premises should be in a populous area
• Initial capital of Kshs. 350,000.00
• A fire certificate will also be required, but after meeting all the other requirements.
NB: The foregoing requirements may change from time to time at the discretion of the company.”
Bizrika wishes to thank Premier Gas for the response and equally all readers as well as individuals that have expressed interest in this subject .