Policy group seeks govt incentives for Liquefied Petroleum Gas firms setting up in rural areas

The Policy Monitoring and Research Centre (PMRC) has called on government to offer market players looking to expand their operations to rural areas incentives in order to improve Liquefied Petroleum Gas (LPG) availability in such areas.

PMRC Executive Director, Sydney Mwamba, noted that the market is relatively small, but growing steadily as more households and businesses switch to LPG as an alternative to traditional fuels such as charcoal and firewood.

Mwamba said this when he unveiled the Centre’s latest research paper titled Propelling Zambia’s Energy Mix enhancing efficiency in the LPG subsector in Lusaka on Wednesday.

He said there was need to also develop storage facilities, distribution networks, and filling stations in order to reduce on the cost of distribution, making LPG more accessible to a wider range of consumers.

“Standardization of quality and pricing can promote transparency and competition, which can lead to lower prices,” Mwamba said.

He said there was need for government to strengthen the regulatory framework in order to help ensure compliance with safety and quality standards, building consumer confidence in LPG.

Mwamba noted that the market was largely dominated by a few key players, with limited competition from smaller distributors with only 60 licensed LPG players according a study conducted by the Energy Regulation Board in 2019.

“It has been made evident that enhancing efficiency in the LPG sub-sector is crucial for propelling Zambia’s energy mix towards a more sustainable future,” he said.

Mwamba further said improving infrastructure, standardization, regulation, consumer education, and innovation could contribute to making LPG more accessible and affordable for consumers.

He said educating consumers on the benefits of LPG and encouraging innovation could help to increase demand and expand the use of LPG, particularly in rural areas.

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